One of the biotech firms to have been in the news in recent times is CytoDyn (OTCQB: CYDY). On Wednesday, the company was back in focus following a significant announcement and that resulted in a strong rally in the CytoDyn stock as well. The company had already been in the news for developing leronlimab. In light of the latest rally, here is a closer look at all the developments.
Fresh Capital Infusion
On Wednesday, it emerged that CytoDyn managed to complete a further non-dilutive convertible debt offering that would provide the company with an immediate capital infusion of as much as $25 million. The offering was taken up by an institutional investor.
The total value of the deal is pegged at $28.5 million. The note in question is going to mature in two years and CytoDyn is going to be charged a yearly interest of 10%. The debt can be converted into shares at $10 a share.
The fresh capital is going to be deployed towards leronlimab. The company revealed that the capital is going to be used for speeding up its efforts for filing a marketing application in the United Kingdom and Canada for using leronlimab as a therapy for HIV.
In this regard, it is also necessary to note that the Medicines & Healthcare product Regulatory Agency (MHRA)in the United Kingdom has already granted permission to CytoDyn to submit the Biologics License Application related to leronlimab.
The clearance for filing the BLA to CytoDyn from the authorities in the United Kingdom was related to the use of leronlimab for HIV combination therapy. The permission had been granted last month and it goes without saying that it is a significant development for CytoDyn.
As per the BLA clearance from the MHRA, the treatment to be included is that of a 350 mg injection each week of leronlimab. In the Phase 3 trial of the product in the United States, two doses of 175 mg each have been allowed per week.
It should be noted that leronlimab is a product that CytoDyn claims could be used to treat multiple conditions and last month, the company made a major announcement.
CytoDyn revealed that two patients who had both had a stroke displayed significant signs of recovery after being administered with leronlimab. Investors should also note that the company also claims that the product could also be used for treating COVID 19 patients.
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