Liquidia Corporation (NASDAQ: LQDA) announced today that it has
entered into a common stock purchase agreement with certain
institutional, accredited investors for the private placement of
8,626,037 shares of common stock at a purchase price of $2.52 per
share, the closing price per share of common stock on April 12,
2021. The private placement is expected to close today and yield
gross proceeds of approximately $21.7 million. The investor group
was led by Caligan Partners LP and includes participation by
existing directors Paul Manning and Roger Jeffs.
Upon closing, David Johnson, a Partner and
Co-Founder of Caligan Partners LP, will be appointed to the board
of directors of Liquidia Corporation as a Class II Director and a
member of the Audit Committee. Previously, Mr. Johnson worked at
The Carlyle Group as Managing Director and at Morgan Stanley as
Vice President in the Principal Investments area. Mr. Johnson was
previously a director of AMAG Pharmaceuticals.
Stephen Bloch, M.D., Chairman of the Liquidia
Board of Directors, said: “Adding David to the Board further
strengthens our abilities to navigate financial markets and advise
Liquidia with the short and long term in mind. We look forward to
bringing his experiences to bear in future discussions.”
David Johnson said: “We are excited to support
Liquidia’s commitment to bring novel therapies to market for
patients with pulmonary arterial hypertension (PAH). Caligan
believes that LIQ861 will be the best inhaled option to treat PAH
because of its convenience and ability to safely provide
symptomatic relief at higher dosage levels than existing inhaled
treprostinil therapies. We are also excited about Liquidia’s
recent announcement that its subcutaneous Treprostinil Injection
will soon be available to PAH patients. We have tremendous
confidence in Damian deGoa and the Liquidia team to execute on
their strategic plan and look forward to working closely with them
during their next stage of growth.”
Damian deGoa, Chief Executive Officer of
Liquidia, said: “We are fortunate to include David Johnson on the
board and to bring smart, committed investors into Liquidia. This
financing builds on several steps taken during the last three
months to strengthen our balance sheet and position the company for
an exciting future.”
Net proceeds from this private placement are
expected to strengthen commercial capability for the introduction
of LIQ861 and the subcutaneous administration of Treprostinil
Injection, enable growth initiatives, and provide support general
corporate purposes.
The securities sold in the private placement
have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), or any state or other applicable
jurisdiction’s securities laws, and may not be offered or sold in
the United States absent registration or an applicable exemption
from the registration requirements of the Securities Act and
applicable state or other jurisdictions’ securities laws. Liquidia
has agreed to file a registration statement with the U.S.
Securities and Exchange Commission registering the resale of the
shares of common stock to be issued and sold in the private
placement no later than the 180th day after the closing of the
private placement. Any offering of the securities under the
registration statement will only be made by means of a
prospectus.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall there be any offer, solicitation or sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About LIQ861LIQ861 is an
investigational inhaled dry powder formulation of treprostinil
designed using Liquidia’s PRINT® technology with the goal of
enhancing deep-lung delivery using a convenient, palm-sized dry
powder inhaler for the treatment of pulmonary arterial hypertension
(PAH). PRINT® technology enables the development of drug particles
that are precise and uniform in size, shape and composition, and
that are engineered for optimal deposition in the lung following
oral inhalation. Liquidia believes LIQ861 can overcome the
limitations of current inhaled therapies and has the potential to
maximize the therapeutic benefits of treprostinil in treating PAH
by safely delivering higher doses into the lungs. Liquidia has
completed an open-label, multi-center phase 3 clinical study of
LIQ861 in patients diagnosed with PAH known as INSPIRE, or
Investigation of the Safety and Pharmacology of Dry Powder
Inhalation of Treprostinil.
About Treprostinil
InjectionTreprostinil Injection is the first-to-file,
fully substitutable generic treprostinil for parenteral
administration. Treprostinil Injection contains the same active
ingredient, same strengths, same dosage form and same inactive
ingredients as Remodulin® (treprostinil), and is offered to
patients and physicians with the same level of service and support,
but at a lower price than the branded drug. Liquidia PAH promotes
the appropriate use of Treprostinil Injection for the treatment of
PAH in the United States in partnership with its commercial
partner, who holds the Abbreviated New Drug Application (ANDA) with
the FDA.
About Liquidia
CorporationLiquidia Corporation is a biopharmaceutical
company focused on the development and commercialization of
products in pulmonary hypertension and other applications of its
PRINT® Technology. The company operates through its two wholly
owned subsidiaries, Liquidia Technologies, Inc. and Liquidia PAH,
LLC. Liquidia Technologies is developing two product candidates:
LIQ861, an inhaled dry powder formulation of treprostinil for the
treatment of PAH, and LIQ865, an injectable, sustained-release
formulation of bupivacaine for the management of local
post-operative pain for three to five days after a procedure.
Liquidia PAH provides the commercialization for rare disease
pharmaceutical products, such as Treprostinil Injection.
Liquidia Corporation is headquartered in Research
Triangle Park, NC. For more information, please
visit www.liquidia.com.
Cautionary Statements Regarding
Forward-Looking StatementsThis press release may include
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements contained
in this press release other than statements of historical facts,
including statements regarding our future results of operations and
financial position, our strategic and financial initiatives, our
business strategy and plans and our objectives for future
operations, are forward-looking statements. Such forward-looking
statements, including statements regarding clinical trials,
clinical studies and other clinical work (including the funding
therefor, anticipated patient enrollment, safety data, study data,
trial outcomes, timing or associated costs), regulatory
applications and related anticipated submission contents and
timelines, including our potential response to the Complete
Response Letter received in November 2020, the potential for
eventual FDA approval of the NDA for LIQ861, the timeline
or outcome related to our patent litigation pending in
the U.S. District Court for the District of Delaware or
its inter partes review with the PTAB, the issuance of
patents by the USPTO and our ability to execute on our strategic or
financial initiatives, involve significant risks and uncertainties
and actual results could differ materially from those expressed or
implied herein. The words “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “would,” and
similar expressions are intended to identify forward-looking
statements. We have based these forward-looking statements largely
on our current expectations and projections about future events and
financial trends that we believe may affect our financial
condition, results of operations, business strategy, short-term and
long-term business operations and objectives and financial needs.
These forward-looking statements are subject to a number of risks
discussed in our filings with the SEC, including the risk that
the expected benefits and synergies from the Merger Transaction are
not realized, the impact of the coronavirus (COVID-19) outbreak on
our Company and our financial condition and results of operations,
as well as a number of uncertainties and assumptions. Moreover, we
operate in a very competitive and rapidly changing environment and
our industry has inherent risks. New risks emerge from time to
time. It is not possible for our management to predict all risks,
nor can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements we may make. In light of these risks,
uncertainties and assumptions, the future events discussed in this
press release may not occur and actual results could differ
materially and adversely from those anticipated or implied in the
forward-looking statements. Nothing in this press release should be
regarded as a representation by any person that these goals will be
achieved, and we undertake no duty to update our goals or to update
or alter any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact
InformationInvestors & Media:Jason
AdairVice President, Corporate Development and
Strategy919.328.4400jason.adair@liquidia.com
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