Chapel Hill-based biopharmaceutical firm Cempra (Nasdaq: CEMP) is aiming to raise nearly $129 million through a stock offering for further development and testing of its potential anti-bacterial treatments.

In November, Cempra landed $16 million in federal funding for federal funding for additional research into developing antibiotics that could prevent young people from being affected in a bioterror attack.

Cempra is looking to sell 5.25 million shares at a price of $24.50. Its shares traded at $25.26 Thursday afternoon. 

Morgan Stanley and Cowen and Company are handling the offering. 

The deal is expected to conclude by Jan. 13.

“The company intends to use the net proceeds from the offering to fund its research and development activities, including continued clinical and regulatory development of solithromycin in community acquired bacterial pneumonia (CABP) and gonorrhea and Taksta in bone and joint infections, preparation for commercial readiness for solithromycin in CABP, working capital and general corporate and administrative expenses,” Cempra said in a statement.

  • From WRAL TechWire archive: Cempra CEO on how drug could combat bioterror

The November funding from the Biomedical Advanced Research and Development Authority, or BARDA, dates back to 2013 and a contract awarding some $58 million.

BARDA has expressed interest in antibacterial agents that overcome a possibly more serious danger — terrorist tinkering that can turn dangerous pathogens into deadly drug resistant bioweapons.

The latest $16 million will be used for study costs and “other activities,” Cempra said at the time.

Next steps are phase “1B’ and “2/3” clinical trials that will test intravenous, oral capsule and oral suspension forms of “solithromycin” for pediatric patients from newborn to age 17. 

Solithromycin is an antibiotic being developed by Cempra. 

“In a recently completed Phase 1a study conducted in pediatric patients age 12 to 17 years, solithromycin oral capsules were well tolerated and demonstrated a pharmacokinetic profile similar to that seen in adults,” Cempra noted.

The company is also testing solithromycin in Phase 3 clinical trials for adults against acquired bacterial pneumonia and gonorrhea. 

“I am pleased with the progress we are making under our continuing collaborative and constructive BARDA relationship that has resulted in the approval of funding for the next phase of our investigational studies with solithromycin in pediatric patients that is expected to extend our indications,” said Prabhavathi Fernandes, Cemrpa’s CEO.

Cempra already has received $17.7 million which was utilized for a Phase 1a clinical trial of pediatric patients ages 12-17 who had suspected or confirmed bacterial infections.