RARE Daily

Quoin Pharma Raises $6.5 Million to Advance Rare Disease Pipeline

March 5, 2024

Quoin Pharma Raises $6.5 Million to Advance Rare Disease Pipeline

Rare Daily Staff

Quoin Pharmaceuticals, a specialty pharmaceutical company focused on rare and orphan diseases, raised $6.5 million in a public offering.

The company, which has a lead candidate in phase 3 studies for Netherton syndrome, priced a “reasonable best efforts” public offering of 4 million ordinary shares represented by 4 million American Depositary Shares (or pre-funded warrants in lieu thereof), series D warrants to purchase an aggregate of up to 4 million ordinary shares represented by 4 million ADS and series E warrants to purchase an aggregate of up to 4 million ordinary shares represented by 4 million ADS at a combined purchase price of $1.60 per ADS and associated series D warrant and series E warrant for aggregate gross proceeds of approximately $6.5 million before deducting placement agent fees and other offering expenses. The series D and series E warrants will have an exercise price of $1.60 per share, will be exercisable immediately following the date of issuance and will expire in two years and five years, respectively, from their issuance.

Quoin’s lead therapeutic candidate QRX003 is a once-daily topical lotion comprised of a broad-spectrum serine protease inhibitor formulated with Quoin’s proprietary delivery technology for the treatment of Netherton syndrome.

Netherton syndrome is a rare and sometimes fatal skin disease for which there is currently no approved treatment, and no cure. It is caused by a mutation of the SPINK5 gene which leads to severe skin barrier defects and recurring severe infections, as well as a pronounced predisposition to allergies, asthma, skin cancers and eczema. Patients also suffer from severe dehydration, an inability to regulate their body temperature, chronic skin inflammation and stunted growth. The only treatment options currently available for Netherton syndrome are limited to providing minor symptomatic relief.

When applied daily to the skin, the active ingredient in QRX003 performs the function of the missing LEKTI protein and down regulates, but does not completely stop, the activity of the kallikreins, leading to a more normalized skin shedding process and the formation of a stronger and more effective skin barrier. The serine protease inhibitor in QRX003 also acts as a potent anti-inflammatory and antioxidant.

In addition to Netherton Syndrome, QRX003 is being developed for three other rare indications: peeling skin syndrome, SAM syndrome, and palmoplantar keratoderma.

Peeling skin syndrome is a rare disease due to mutations in the TGM5 gene, inherited in an autosomal recessive pattern. This rare disorder is characterized by the continuous painless peeling of the top layer of skin. It can appear as abnormal blistering of the skin anywhere on the body, but most often presents on the hands and feet. Symptoms can include itching, hyperpigmentation, and redness. Incidence is less than one in one million.

SAM syndrome is a rare life-threatening inherited condition caused by mutations in the desmoglein1 gene that presents with severe skin dermatitis, multiple allergies and metabolic wasting.

Palmoplantar keratoderma causes thickening of the skin on the hands and feet and can be either inherited or acquired. Patients may experience pain when walking, excessive foot odor and/or sweating, along with reduced sensation of fingers or toes.

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