KaloBios Pharmaceuticals, Inc.
) announced the pricing of its underwritten public offering of
its common stock. The company is looking to issue 7.5 million
shares at $4 per share. KaloBios expects net proceeds of $27.9
million through this offering.
Underwriters have been granted an option to purchase an
additional 1.1 million shares of KaloBios' common stock, with a
30-day window to do so.
KaloBios intends to utilize the net proceeds from the public
offering primarily for the development of its pipeline. The
company also has plans to use the net proceeds for working
capital and other general corporate purposes. Cash and cash
equivalents at the end of Jun 30, 2013 were roughly $19.5
We are encouraged by KaloBios' progress on its pipeline.
KB001-A, a second generation, anti-TTSS antibody, is currently in
a phase II study for the treatment of chronic Pa infections in
cystic fibrosis (CF) patients. While KaloBios has orphan drug
status for KB001-A in the EU, the U.S. Food and Drug
Administration (FDA) has completed its review for the same and
has asked for additional information.
After the completion of the ongoing phase II CF study,
KaloBios will provide the FDA with additional data. Enrollment is
expected to complete in mid-2014 with top-line results due in the
fourth quarter of 2014.
KaloBios has completed enrollment of patients in a phase II
study on another candidate, KB003. KB003 is being studied for the
treatment of severe asthma. KaloBios anticipates top-line results
in the first quarter of 2014.
KaloBios is currently conducting a phase I study on its
anti-EphA3 mAb, KB004, for the treatment of hematologic
malignancies. After top-line data from this study is obtained (in
the fourth quarter of 2013), KaloBios plans to start the phase II
expansion phase of the study in acute myeloid leukemia and
KaloBios currently carries a Zacks Rank #3 (Hold). Companies
that look well-positioned include
Questcor Pharmaceuticals Inc.
). All three carry a Zacks Rank #1 (Strong Buy).
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