Marinus Pharmaceuticals Inc. (NASDAQ: MRNS) shares backed off on Wednesday when the firm announced that it would be conducting a secondary offering. The company is capitalizing on its success earlier this week when it posted positive results from its midstage trial in women with postpartum depression.
The firm plans to offer 12.0 million shares of common stock with an overallotment option for an additional 1.8 million shares. The company has yet to hint at a price.
The underwriters for the offering are Jefferies and Leerink Partners.
In terms of the study, the firm announced positive results from its Phase 2 clinical trials evaluating ganaxolone intravenous (IV) (the Magnolia Study). And based on these results, Marinus is advancing both studies into the next phase of development to evaluate IV and oral dose regimens.
The highest dose group demonstrated the most robust results, with a clinically meaningful 5.6-point reduction in Hamilton Rating Scale for Depression (HAM-D17) compared to placebo at 48 hours that was durable through the last visit, on day 34.
About 75% of patients were responders, as defined as having an over 50% reduction from the baseline, at day 34 and 67% were responders at 60 hours. Also, 50% of patients achieved remission from depression at day 34 and 33% achieved remission at 60 hours.
The company detailed its plans for the net proceeds as follows:
Marinus intends to use the net proceeds received from the sale of its common stock to advance the preclinical and clinical development of ganaxolone, including clinical trial expenses, including trials for postpartum depression and its rare pediatric refractory epilepsy program, and regulatory, research and development, pre-commercial, general and administrative and manufacturing expenses and for working capital and general corporate purposes.
Shares of Marinus were last seen down about 12% at $4.47, in a 52-week range of $3.31 to $10.54. The stock has a consensus analyst price target of $20.83.