RESEARCH TRIANGLE PARK – An investor group led by Caligan Partners LP that includes existing company directors Paul Manning and Roger Jeffs entered into a common stock purchase agreement with Liquidia (NASDAQ: LQDA) that will yield gross proceeds of approximately $21.7 million.
The deal includes the sale of 8,626,037 shares at the purchase price of $2.52 per share, the company announced today in a statement.
As a part of the deal, David Johnson, partner and cofounder of Caligan Partners LP, will join the company’s board of directors. Current chairman of the board Stephen Bloch said the move will strengthen the company’s position to navigate financial markets.
Liquidia recently announced that its subcutaneous Treprostinil Injection will soon be available to patients with pulmonary arterial hypertension, or PAH. The net proceeds from the private placement will strengthen the company’s commercial capability for this product and enable growth initiatives, the company said.
FDA needs more info before approving new drug application for Liquidia
The company reported in November that the U.S. Food and Drug Administration issued a complete response letter for the company’s new drug application for the drug known as LIQ861, or treprostinil inhalation powder, stating that the agency was unable to approve the application citing a need for additional information and clarification. At the time, the company expressed a belief that the treatment will still gain approval from the FDA in a statement.
One month later, the company named a new CEO, Daniam deGoa, after acquiring RareGen, which DeGoa headed as CEO at the time of the acquisition. According to a company statement, outgoing CEO Neal Fowler agreed to provide assistance to the company for a short time to smooth the transition. As a part of assuming the role of CEO, deGoa was granted a non-statutory stock option to purchase up to 2 million shares of the company’s common stock, with conditions.
