1:20 PM
 | 
Jun 12, 2018
 |  BC Extra  |  Financial News

Kadmon raises $100M ahead of new trials

Kadmon Holdings Inc. (NYSE:KDMN) added $0.35 (10%) to $3.68 on Tuesday after it raised $100 million in two offerings through the sale of 30.3 million shares at $3.30. The company sold the shares in a follow-on underwritten by Jefferies and H.C. Wainwright, and in a registered direct offering to institutional investors.

The price is a 1% discount to Kadmon's close of $3.35 on Monday, before it proposed the offering after market hours.

Kadmon's lead candidate KD025 is in Phase II testing for chronic graft-versus-host disease (GvHD), idiopathic pulmonary fibrosis (IPF) and moderate to severe psoriasis.

Next quarter, Kadmon expects to start an open-label, pivotal Phase II trial of KD025 in chronic GvHD. In 4Q18, the company anticipates starting a placebo-controlled Phase II trial of the candidate for scleroderma.

KD025 is an oral selective inhibitor of Rho-associated coiled-coil containing protein kinase 2 (ROCK2). It has Orphan Drug designation in the U.S. to treat chronic GvHD.

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