LOS ALTOS, Calif. - Unicycive Therapeutics, Inc. (NASDAQ: UNCY), a biotechnology firm focused on kidney disease treatments, has announced a $50 million private placement of its Series B Convertible Preferred Stock. The transaction, priced at $1,000 per share, is set to close on March 18, 2024, contingent upon customary closing conditions.
The funding round is led by Octagon Capital and Great Point Partners, LLC, and includes a mix of new and returning healthcare institutional investors such as Logos Capital, Nantahala Capital, SilverArc Capital, Velan Capital, Vivo Capital, and Walleye Capital. Leerink Partners and Piper Sandler are serving as placement agents.
Proceeds from the private placement are earmarked for advancing Unicycive's clinical development pipeline, particularly its leading drug candidate, Oxylanthanum Carbonate (OLC). OLC is currently undergoing a pivotal trial, and upon completion, Unicycive plans to submit a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for the treatment of hyperphosphatemia in dialysis patients.
Dr. Shalabh Gupta, CEO of Unicycive, expressed confidence that the investment underscores the potential of their clinical programs and will support the approval process and planned commercial launch of OLC.
Unicycive Therapeutics is actively developing novel treatments for kidney diseases, with its lead drug OLC and UNI-494, a new chemical entity aimed at acute kidney injury conditions.
This announcement comes as part of a press release statement
InvestingPro Insights
As Unicycive Therapeutics, Inc. (NASDAQ: UNCY) gears up for the pivotal trial of its lead drug candidate, Oxylanthanum Carbonate (OLC), investors are closely watching the company's financial health and market performance. According to InvestingPro data, Unicycive has a market capitalization of approximately $48.31 million, reflecting the market's current valuation of the company. Despite the anticipation surrounding its clinical developments, the company is trading at a high Price / Book multiple of 14.25, suggesting a premium valuation relative to the company's book value.
InvestingPro Tips indicate a mix of caution and optimism for Unicycive's future. On the one hand, the company holds more cash than debt on its balance sheet, which is a positive sign for financial stability. On the other hand, analysts have revised their earnings downwards for the upcoming period, and they anticipate a sales decline in the current year. Additionally, the company is not expected to be profitable this year, and it has been quickly burning through cash.
Despite these challenges, Unicycive has experienced a strong return over the last three months, with a 139.66% price total return, showcasing significant investor confidence in the short term. This could be attributed to the progress in its clinical trials and the recent capital infusion from the private placement.
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