Celator Pharma Prices Secondary Offering

Health and Healthcare

Published: March 24, 2016 11:10 am

Last Updated: January 13, 2020 11:34 am

Celator Pharmaceuticals Inc. (NASDAQ: CPXX) has filed with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The company intends to price 4 million shares, with an overallotment option for an additional 600,000 shares, at $9.50 per share. The entire offering is valued up to $43.7 million.

The underwriters for the offering are Stifel, Needham, Roth Capital Partners, H.C. Wainwright and National Securities.

This oncology-focused biopharmaceutical company is transforming the science of combination therapy and developing products to improve patient outcomes in cancer. Its proprietary technology platform, CombiPlex, enables the rational design and rapid evaluation of optimized combinations incorporating traditional chemotherapies, as well as molecularly targeted agents to deliver enhanced anti-cancer activity.

The lead product is Vyxeos, a nano-scale liposomal formulation of cytarabine:daunorubicin, in Phase 3 clinical testing, for the treatment of acute myeloid leukemia. Celator has also conducted clinical development efforts on CPX-1, a nano-scale liposomal formulation of irinotecan:floxuridine for the treatment of colorectal cancer, and it has a preclinical stage product candidate, CPX-8, a hydrophobic docetaxel prodrug nanoparticle formulation. More recently, the company advanced the CombiPlex platform and broadened its application to include molecularly targeted therapies.

The company listed its expected milestones for Vyxeos as:

New Drug Application (NDA) in third quarter of 2016
Market Authorization Application (MAA) submission in first quarter of 2017
Prescription Drug User Fee Act (PDUFA) date (assuming FDA priority review) in mid-2017
Committee for Medicinal Products for Human Use (CHMP) opinion date in first quarter of 2018

The company intends to use the net proceeds received from the sale of common stock to fund regulatory, manufacturing, commercial and clinical activities for Vyxeos and for general corporate purposes, including working capital.

Shares of Celator were trading down 7% at $11.60 on Thursday, with a consensus analyst price target of $18.33 and a 52-week trading range of $1.12 to $12.73.

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