Savara Raises $130 Million to Advance Development of aPAP Therapy

Rare Daily Staff

Savara said it raised $130 million in an underwritten public offering of common stock and warrants to advance its lead therapeutic for the treatment of autoimmune pulmonary alveolar proteinosis, a rare autoimmune lung disorder.

The company sold 57.5 million shares of its common stock at $1.45 per share, and to certain investors, pre-funded warrants to purchase an aggregate of 32.2 million shares of common stock at a purchase price of $1.449 per warrant, which represents the per share public offering price for the common stock less the $0.001 per share exercise price for each pre-funded warrant. Proceeds, before deducting underwriting discounts and commissions and other offering expenses, were approximately $130.0 million.

Savara intends to use the proceeds from this offering for working capital to support operations, including the clinical development, manufacturing, regulatory, and commercial activities related to its molgramostim nebulizer solution in autoimmune pulmonary alveolar proteinosis program and the IMPALA 2 trial, and general and administrative expenses.

Autoimmune pulmonary alveolar proteinosis (aPAP) is the most common form (90 percent of cases) of pulmonary alveolar proteinosis. Most cases affect adults between the ages of 20-50 years. Some people may not show symptoms, while others may have progressive difficulty breathing and shortness of breath upon exertion. Other symptoms may include a dry, chronic cough, fatigue, and a general feeling of ill health.

Autoimmune PAP is caused by an immune system malfunction, due to IgG antibodies that block the granulocyte-Macrophage Colony Stimulating Factor (GM-CSF) effect. GM-CSF is a protein that regulates clearance of surfactant (a mix of protein and fat) by alveolar macrophages. The surfactant pile up in the air sacs of the lungs (alveoli), and eventually lead to an inability to breath.

Savara’s lead program, molgramostim, is an inhaled granulocyte-macrophage colony-stimulating factor (GM-CSF) in phase 3 development for aPAP.