Therapeutics Company Announces Positive Trial Results For Fibro-inflammatory Disease Treatment
Therapeutics Company Announces Positive Trial Results For Fibro-inflammatory Disease Treatment
Chemomab Therapeutics Announces Positive Phase 2 Trial Results for CM-101 in Primary Sclerosing Cholangitis.
Disclaimer: This article is intended for informational purposes only and should not be construed as financial, medical, or investment advice. Readers should conduct their own research and consult with professional advisors before making any decisions based on the information provided herein.
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Chemomab Therapeutics Ltd. (NASDAQ:CMMB) ("Chemomab" or "the Company"), a clinical-stage biotechnology company focused on developing innovative treatments for fibro-inflammatory diseases with high unmet needs, recently announced substantial progress in its Phase 2 clinical trial for CM-101. The trial has demonstrated positive results in achieving primary and secondary endpoints, showing anti-fibrotic, anti-inflammatory, and anti-cholestatic effects in patients suffering from Primary Sclerosing Cholangitis (PSC).
Overview of Chemomab Therapeutics and CM-101
Chemomab Therapeutics is dedicated to addressing challenging conditions characterized by severe inflammation and fibrosis. One of their leading projects, CM-101, is a monoclonal antibody designed to target and neutralize CCL24, a chemokine involved in the pathogenesis of various inflammatory diseases. The promising results from the Phase 2 trial indicate that CM-101 could play a crucial role in treating PSC, a rare and progressive liver disease that currently lacks effective therapeutic options.
The Phase 2 trial was structured to evaluate the efficacy and safety of CM-101 in patients with PSC. The trial's primary endpoint was to observe the reagent's impact on hepatic fibrosis, assessed via imaging and other biomarkers. Secondary endpoints included measures of inflammation and cholestasis.
Anti-Fibrotic Effects: CM-101 demonstrated efficacy in reducing hepatic fibrosis, which is a hallmark of PSC. The reduction in fibrosis was observed through non-invasive imaging techniques and supported by changes in relevant biomarkers.
Anti-Inflammatory Effects: The trial also showed that CM-101 effectively reduced inflammation markers in patients, indicating a decrease in the inflammatory processes that contribute to PSC progression.
Anti-Cholestatic Effects: Cholestasis, or impaired bile flow, is another critical aspect of PSC. CM-101 treatment resulted in improved bile flow, as evidenced by the reduction in serum markers associated with cholestasis.
These findings mark a milestone in the development of CM-101 and offer hope for patients with PSC, who currently face limited treatment options.
Financial Developments: PIPE Investment
In addition to the promising clinical trial results, Chemomab Therapeutics announced a financial development. The company has entered into a securities purchase agreement for a private investment in public equity (PIPE). This agreement is expected to bring approximately $10 million in gross proceeds to Chemomab, prior to deducting capital market advisor fees and offering expenses.
The PIPE investment includes participation from both new and existing investors. Notably, HBM Healthcare Investments and Sphera Biotech Master Fund LP are among the new investors, while several existing investors have also contributed. This infusion of capital is anticipated to extend Chemomab's operational runway through early 2026, providing the necessary funds to advance their programs, including CM-101.
Pursuant to the securities purchase agreement, Chemomab will sell:
4,188,867 American Depositary Shares (ADSs), each representing twenty ordinary shares of the Company, at a purchase price of $1.235 per share.
Pre-funded warrants to purchase up to 3,908,300 ADSs at the same price of $1.235 per pre-funded warrant, with an exercise price of $0.0001 per ADS.
The pre-funded warrants are immediately exercisable and will remain so until exercised in full. The closing of this PIPE transaction is expected around July 26, 2024, subject to customary closing conditions.
Chemomab plans to utilize the net proceeds from the PIPE, along with existing cash reserves, to fund its development programs for CM-101 and support general corporate activities and working capital needs. This financial planning ensures that the company can continue its research and development efforts without interruption, aiming to reach two major milestones expected in early 2025.
Advisory and Regulatory Aspects
Oppenheimer & Co. Inc. is acting as the Capital Markets Advisor for the PIPE. Other advisory roles are being fulfilled by Maxim Group and LifeSci Capital. The offer and sale of the securities mentioned are being conducted in a manner not involving a public offering, thus the securities have not been registered under the Securities Act of 1933. These securities may only be resold in the United States under an effective registration statement or an applicable exemption from registration requirements.
Concurrently with the execution of the securities purchase agreement, Chemomab and the investors have entered into a registration rights agreement. This agreement mandates the company to file a registration statement with the Securities and Exchange Commission (SEC) to register the resale of the ADSs, including those issuable upon exercise of the pre-funded warrants purchased in the PIPE.
The positive results from the Phase 2 trial of CM-101, combined with the successful PIPE investment, position Chemomab Therapeutics favorably for future growth and development. The company's commitment to developing treatments for fibro-inflammatory diseases addresses a unmet medical need, and the financial backing will support these efforts through key upcoming milestones.
As the company progresses towards completing its trials and potentially bringing CM-101 to market, it remains focused on its mission to provide innovative therapeutic solutions for patients with severe and hard-to-treat conditions. The biotech community and potential investors will undoubtedly keep a close watch on Chemomab’s advancements and future announcements.
Disclaimer: This article is intended for informational purposes only and should not be construed as financial, medical, or investment advice. Readers should conduct their own research and consult with professional advisors before making any decisions based on the information provided herein.
Real-time information is available daily at https://stockregion.net