FREMONT — Ardelyx, Inc. (NASDAQ: ARDX), a clinical-stage biopharmaceutical company focused on gastrointestinal and cardio-renal diseases, has entered into an agreement to sell shares of its common stock for aggregate gross proceeds of approximately $110 million in a private placement. Investors in the private placement consist of new and existing investors, including: New Enterprise Associates (NEA), the Company’s largest stockholder and one of the largest biotechnology investors worldwide, Australia’s Future Fund, Quadrille Capital, EcoR1 Capital, RA Capital Management, First Manhattan Co., Rock Springs Capital, Cormorant Asset Management, Perceptive Advisors, Deerfield and DAFNA Capital Management. Proceeds from the private placement will be used for Phase 3 development of tenapanor for two indications, IBS-C and hyperphosphatemia, as well as development of RDX227675 for the treatment of hyperkalemia.
“We are extremely pleased to receive such tremendous support from this impressive syndicate of biotech investors who recognize the vision we have for Ardelyx,” said Mike Raab, President and CEO of Ardelyx. “With this additional capital, we will now have the capacity to execute on many critical milestones between now and the end of 2017 including:
- completion of the first registration trial for tenapanor to treat hyperphosphatemia in ESRD patients on dialysis and initiation of the second registration clinical trial,
- completion of T3MPO-1 and T3MPO-2 tenapanor Phase 3 clinical trials to treat irritable bowel syndrome with constipation and, assuming success, the opportunity for us to begin activities to file a new drug application,
- completion of our onset-of-action clinical trial in patients with hyperkalemia with RDX227675, our proprietary potassium binder, and the initiation of the Phase 3 clinical trial in preparation for registration, and
- the filing of an IND and completion of the first Phase 1 clinical trial for RDX98940, our minimally-systemic TGR5 agonist that stimulates the secretion of GLP-1 and GLP-2 in the intestine for potential use in certain GI and metabolic disorders such as NASH, diabetes and inflammatory bowel disease.”
Accounting for the expected net proceeds from this private placement, the Company’s pro forma cash and cash equivalents as of June 30, 2016 is approximately $257 million including approximately $147 million in cash and cash equivalents as of June 30, 2016 plus net proceeds from this private placement of approximately $110 million.
Ardelyx has agreed to sell approximately 12.6 million shares of common stock for aggregate gross proceeds of $110 million in the private placement. The price to be paid for the common stock, $8.73 per share, is equal to the consolidated closing bid price on the Nasdaq Global Market on the day of pricing, July 14, 2016.