SAN DIEGO - Cardiff Oncology, Inc. (NASDAQ:CRDF), a biotechnology firm focusing on the development of novel cancer therapies, has announced the pricing of its public stock offering. The company, currently valued at approximately $124 million, is offering 15,384,619 shares at $2.60 each, aiming to raise approximately $40 million before fees and expenses. The stock has shown remarkable resilience, delivering an 88% return over the past year. According to InvestingPro analysis, the company currently holds more cash than debt on its balance sheet, though it's quickly burning through its reserves. The offering, expected to close around December 11, 2024, involves participation from new and existing investors.
The funds from this underwritten offering are earmarked for clinical trial costs of onvansertib, the company's leading drug candidate for the treatment of RAS-mutated metastatic colorectal cancer, as well as for general corporate purposes. With a current ratio of 4.74, the company maintains strong liquidity to meet its short-term obligations, though its financial health score from InvestingPro indicates some challenges ahead. TD Cowen is the lead book-runner, with William Blair, H.C. Wainwright & Co., and Craig-Hallum also involved in managing and co-managing the offering.
This financial move comes after Cardiff Oncology's registration statement on Form S-3 was declared effective by the U.S. Securities and Exchange Commission on April 25, 2022. The company plans to file a prospectus supplement and accompanying prospectus with the SEC, detailing the offering terms.
Cardiff Oncology leverages PLK1 inhibition to create therapies targeting various cancers. Onvansertib, in combination with standard-of-care treatments, is undergoing clinical trials for multiple indications, including metastatic pancreatic ductal adenocarcinoma and other cancers through investigator-initiated trials.
This press release contains forward-looking statements regarding the offering and the anticipated use of proceeds. However, these statements are subject to various risks, including the completion of the offering, clinical trial outcomes, and regulatory hurdles. The company cautions that the forward-looking statements are not guarantees of future performance and that actual results could differ materially. InvestingPro subscribers have access to detailed financial analysis and 8 additional ProTips that could help evaluate the company's investment potential, including comprehensive valuation metrics and growth forecasts available in the Pro Research Report.
The information provided is based on a press release statement from Cardiff Oncology and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, Cardiff Oncology has secured a U.S. patent for the method of using onvansertib in combination with bevacizumab in the treatment of KRAS mutated metastatic colorectal cancer. The patent, issued by the United States Patent and Trademark Office, extends through 2043 and covers the use of onvansertib, a Polo-like kinase 1 inhibitor, with bevacizumab for patients who have not been treated previously with bevacizumab. Onvansertib is currently in a Phase 2 trial, and initial data is expected by the end of 2024.
CEO Mark Erlander has expressed that the patent represents a significant step in their mission to advance onvansertib as a first-line treatment for patients with RAS mutations. The patent is seen as a validation of the potential for onvansertib to improve treatment efficacy in this patient group. Cardiff Oncology is also conducting and planning trials for other cancer types, including metastatic pancreatic ductal adenocarcinoma, small cell lung cancer, and triple-negative breast cancer.
These developments are part of the recent activities at Cardiff Oncology. However, it's important to note that these forward-looking statements involve risks and uncertainties, and actual results may differ.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.