Pyxis Oncology Announces $50 Million Private Placement
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Insights
The private placement of shares by Pyxis Oncology represents a strategic move to raise capital, indicative of the company's need for additional funds to support its clinical programs. With the shares priced at $4.78, there is a significant infusion of cash that will likely be allocated towards the advancement of their oncology therapeutics. Investors will be particularly interested in the terms of the pre-funded warrants, which have an exercise price of $0.001 per share, as this could indicate future dilution of the stock but also reflects a potentially higher level of confidence from investors who are willing to commit capital at a fixed, albeit nominal, future price.
From a financial perspective, the transaction's impact on the company's cash runway and its ability to reach key clinical milestones without the need for immediate additional funding will be crucial. The dilution effect of the new shares on existing shareholders is a concern, but it is balanced against the potential for accelerated drug development and the long-term value creation if the therapeutics prove successful.
It's also important to note that the involvement of healthcare specialist investors suggests that the company's therapeutic pipeline has garnered interest from knowledgeable parties within the industry, which could be a positive signal regarding the quality and potential of the company's drug candidates.
In the context of Pyxis Oncology's focus on developing therapeutics for difficult-to-treat cancers, the capital raised through this private placement is likely earmarked for clinical trials, research and development and possibly for preparing regulatory submissions if their drug candidates are at a mature stage of development. The success of these programs is critical for the company's future, as oncology remains a highly competitive and research-intensive field.
For stakeholders, the quality of the company's pipeline and the stages of development are key factors in evaluating the potential return on investment. The clinical success of their therapeutics will greatly determine the company's valuation in the future. It is also essential to monitor the company's burn rate and how the newly acquired funds are being utilized to progress through the expensive clinical trial phases.
Given the high risk and high reward nature of clinical-stage biopharmaceutical companies, the outcome of Pyxis Oncology's research efforts will have significant implications for both the company's financial health and its ability to deliver new cancer treatments to the market.
The pricing of the private placement at $4.78 per share provides insight into the current valuation of Pyxis Oncology in the eyes of institutional and accredited investors, particularly those specializing in healthcare. This valuation reflects both the potential investors see in the company and the risks associated with its clinical-stage status. The market will be observing how this capital raise affects the company's stock performance, especially considering the potential dilution and the implications of the pre-funded warrants.
It is also pertinent to analyze how this move compares to similar capital raises by peer companies in the biotech sector. The terms of the deal, including the price per share and the conditions of the pre-funded warrants, can provide a benchmark for evaluating the attractiveness of the investment relative to the industry standard. Furthermore, the market's reaction to this news can serve as an indicator of investor sentiment towards the biotech sector, especially in the oncology space, which is known for its volatility due to the binary nature of clinical trial results.
BOSTON, Mass., Feb. 27, 2024 (GLOBE NEWSWIRE) -- Pyxis Oncology, Inc. (Nasdaq: “PYXS”), a clinical stage company focused on developing next generation therapeutics to target difficult-to-treat cancers, today announced that it has agreed to sell 8,849,371 shares of its common stock at a price of
The financing included participation from new and existing institutional investors, including Deep Track Capital, Ridgeback Capital Investments L.P., Blue Owl Healthcare Opportunities, Laurion Capital Management, and StemPoint Capital L.P.
Pyxis Oncology intends to use the net proceeds from this proposed financing to fund the continued development of PYX-201, the Company’s lead antibody-drug conjugate therapeutic candidate, being evaluated in an ongoing phase 1 study for solid tumors and for working capital and general corporate purposes.
Leerink Partners acted as lead placement agent and LifeSci Capital acted as co-placement agent for the private placement.
The securities to be sold in the private placement and described above have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, these securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Pyxis Oncology has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) registering the resale of the shares of common stock issued in the private placement and the shares of common stock issuable upon the exercise of the pre-funded warrants issued in the private placement no later than the 30th day after from the signing of the registration rights agreement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.
About Pyxis Oncology, Inc.
Pyxis Oncology, Inc. is a clinical stage company focused on defeating difficult-to-treat cancers. The company is efficiently building next generation therapeutics that hold the potential for mono and combination therapies. PYX-201 and PYX-106 are being evaluated in ongoing Phase 1 clinical studies in multiple types of solid tumors. Pyxis Oncology’s therapeutic candidates are designed to directly kill tumor cells and to address the underlying pathologies created by cancer that enable its uncontrollable proliferation and immune evasion. Pyxis Oncology’s antibody-drug conjugates (ADCs) and immuno-oncology (IO) programs employ novel and emerging strategies to target a broad range of solid tumors resistant to current standards of care.
Forward Looking Statements
This press release contains forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws. These statements are often identified by the use of words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “to be,” “will,” “would,” or the negative or plural of these words, or similar expressions or variations, although not all forward-looking statements contain these words. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur and actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled “Risk Factors” set forth in Pyxis Oncology’s Annual Report on Form 10-K for the year ended December 31, 2022, Pyxis Oncology’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, Pyxis Oncology’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, Pyxis Oncology’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and our other filings, each of which is on file with the Securities and Exchange Commission. These risks are not exhaustive. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date hereof and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
Pyxis Oncology Contact
Pamela Connealy
CFO and COO
ir@pyxisoncology.com
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