Avidity Biosciences Aims to Sell $100 Million in Shares to Fund AOC 1001 Trial
August 02 2021 - 4:49PM
Dow Jones News
By Mary de Wet
Avidity Biosciences Inc. said Monday that it intends to sell
$100 million of its shares in an underwritten public offering to
fund a trial of a possible treatment for myotonic dystrophy type
1.
Earlier in the day, the biopharmaceutical company said the U.S.
Food and Drug Administration had cleared the company to proceed
with the Phase 1/2 clinical trial of AOC 1001, an antibody designed
to reduce levels of DMPK, the disease-related mRNA, in patients
with myotonic dystrophy.
Shares climbed as high as $20.92 Monday before closing at
$20.63, up 6.8%.
Avidity Biosciences said it would grant underwriters of the
share offering the option to buy up to an additional 15% of the
shares.
The company said it would use the offering's net proceeds,
together with its existing cash, to complete the Phase 1/2 trial
for AOC 1001; to advance AOC 1044, a treatment for Duchenne
Muscular Dystrophy, into clinical development; to further advance
its Antibody Oligonucleotide Conjugates platform in and beyond its
muscle franchise; and toward working capital and other general
corporate purposes.
Myotonic dystrophy type 1 is a progressive and often fatal
disease caused by a triplet-repeat on the DMPK gene, resulting in a
toxic gain of function mRNA, Avidity Biosciences said. There are no
treatments for the disease, the company said.
The FDA recently granted its orphan drug designation to AOC
1001, the company said. The designation is granted to drugs that
seek to treat a rare disease or condition.
Write to Mary de Wet at mary.dewet@dowjones.com
(END) Dow Jones Newswires
August 02, 2021 16:38 ET (20:38 GMT)
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