Oxygen Bio to raise $52 million through stock sale

03/18/2014 4:43 PM

02/15/2015 10:43 AM

Oxygen Biotherapeutics expects to raise $52 million after pricing its public offering of shares at $5.60 per share, the Morrisville company announced Tuesday.

The offering is expected to close by Friday. The company’s stock closed Tuesday at $5.68, down 53 cents. The shares are up 26 percent this year.

Oxygen Bio plans to use some of the proceeds from the stock sale to further its efforts to complete clinical trials and obtain regulatory approval for Oxycyte and Levosimendan.

Oxycyte is a treatment for traumatic brain injuries. Earlier this month, federal regulators lifted their clinical hold on the drug, allowing Oxygen Bio to move ahead with its clinical development. The company has partnered with Wilmington-based PPD to complete the second phase of clinical trials of Oxycyte.

Levosimendan is a drug to treat cardiac surgery patients at risk of developing low cardiac output syndrome, or LCOS. It has been granted fast-track status by the Food and Drug Administration, a designation that accelerates the review process for drugs that have the potential to offer significant improvement in treatment compared to products already on the market.

In January, Oxygen Bio announced details of late-stage clinical trials for Levosimendan. The company expects to begin enrolling its first patients in Phase 3 clinical trials later this year. Oxygen Bio believes Levosimendan targets a $600 million market in the U.S.

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