$100M Richer, Cempra still desires FDA ok to Market Pneumonia Drug
Cempra is raising nearly $ 100 million thru a stock sale to convey its first drug, a new antibiotic called solithromycin, to market as a pneumonia remedy.
however Chapel Hill, NC-based totally Cempra (NASDAQ: CEMP) can’t transfer forward with these plans until the FDA provides its blessing. that might take a while. The agency said in a regulatory submitting Wednesday that it plans to ask the company for approval this quarter, which means the FDA’s decision must come well prior to the tip of 2016.
The FDA’s usual evaluation time for medication is 10 months. but Cempra’s drug could get a faster evaluate beneath FDA packages that goal to extra fast bring to market new drugs addressing unmet scientific needs. The FDA last yr granted the Cempra drug quick observe standing, which qualifies it for a precedence overview of six months.
each the capsule and intravenous kinds of the Cempra drug have this quick monitor monitor designation from the FDA. The FDA has also distinct both types of solithromycin as “qualified infectious illness products,” which makes the drug eligible for benefits below the producing Antibiotics Incentives Act (acquire), a federal regulation that created incentives to encourage drugmakers to advance new antibiotics. underneath acquire, the Cempra drug might receive five-year extension of marketing exclusivity—if the drug is authorized.
All of this sounds like excellent news for the antibiotic firm, but buyers aren’t enthused. the corporate’s inventory dropped 6.5 percent on the news this morning, and closed at $ 22.15, down 10.4 % from Wednesday’s closing price.
Cempra priced its secondary providing of 4.1 million shares at $ 24 per share and expects net proceeds of $ ninety three.7 million, with as much as $ 14.1 million more if Cempra’s underwriters make a decision to extend the deal.
The providing follows Cempra’s October announcement that the IV model of solithromycin hit its goal in a phase 3 clinical trial for neighborhood received bacterial pneumonia. The purpose used to be to see how carefully the Cempra drug worked compared to an established therapy for the disease, assessing whether Cempra’s antibiotic was once “noninferior.” In trial results comparing the Cempra drug towards moxifloxacin, a former blockbuster bought by using Bayer, Cempra’s solithromycin hit that statistical target. That’s important for the reason that Cempra drug might supply a substitute for moxifloxacin, which comes from a category of gear associated with a risk of tendonitis or tendon rupture. research showed no such accidents in sufferers receiving the Cempra drug.
regardless of these positive results, Cempra’s stock dropped closing October to a fifty two-week low of $ 15.forty three. even if the intravenous model of solithromycin hit the study’s main purpose, the implications still fell wanting these proven by using a tablet type of the drug, which stated positive results in a separate late-stage learn about early remaining year. outcomes also confirmed that patients on the intravenous model had more inflammation at the site of the injection compared to sufferers receiving the Bayer drug.
Cempra CEO Prabha Fernandes said in October she anticipated to current full information for the capsule and IV variations in early 2016. She additionally cited that solithromycin confirmed no dangerous results on the liver, and that the pain and rashes at the injection web page are identified reactions to macrolides, the category of drugs that features solithromycin.
Cempra’s inventory worth had recovered from the October tumble, closing 2015 at $ 31.thirteen, prior to this week’s dip.
the brand new proceeds will have to carry the company through the 2nd quarter of 2017, in keeping with the filing. along with its advertising and marketing plans, Cempra will spend the money on extra R&D. it is usually learning solithromycin as a remedy for gonorrhea and nonalcoholic steatohepatitis (NASH), a liver disease that has no FDA-licensed therapy. next within the company’s drug pipeline is fusidic acid (Taksta), which the company is finding out as a potential treatment for patients with aggressive skin infections, in addition to these with prosthetic joint infections.