InflaRx completes $150 million stock offering at $2 per share

JENA, Germany - InflaRx N.V. (NASDAQ:IFRX) announced today the completion of its underwritten offering of 75,000,000 ordinary shares at $2.00 per share, according to a press release statement. The stock currently trades at $2.65, reflecting a 26% gain over the past week, bringing the company’s market capitalization to $191.6 million.

The biopharmaceutical company received aggregate gross proceeds of $150 million before deducting underwriting discounts and offering expenses. The company stated it intends to use the net proceeds to advance its pipeline activities and for working capital and general corporate purposes. According to InvestingPro data, the company is currently overvalued relative to its Fair Value estimate and has been burning through cash with negative free cash flow of $41.6 million over the last twelve months.

The offering included participation from new and existing investors. New investors included TCGX, Farallon Capital Management, Sirenia Capital Management LP, Columbia Threadneedle Investments, Great Point Partners, LLC, ADAR1 Capital Management, Coastlands Capital, Squadron Capital Management and other mutual funds. Existing investors 683 Capital and others also participated.

Guggenheim Securities served as lead bookrunner for the offering. Oppenheimer & Co. and LifeSci Capital acted as bookrunners. Raymond James and Needham & Company served as co-lead managers, while H.C. Wainwright & Co. and Lucid Capital Markets acted as co-managers.

The offering was conducted under a shelf registration statement declared effective by the U.S. Securities and Exchange Commission on July 11, 2023.

InflaRx focuses on developing anti-inflammatory therapeutics targeting the complement system. The company’s lead program is izicopan, an orally administered small molecule inhibitor being developed for the treatment of AAV and additional renal diseases. The company also developed vilobelimab, an intravenously delivered anti-C5a monoclonal antibody.

The company was founded in 2007 and maintains offices in Jena and Munich, Germany, as well as Ann Arbor, Michigan.

In other recent news, InflaRx N.V. has announced plans to develop its oral C5a receptor inhibitor, izicopan, for the treatment of ANCA-associated vasculitis, a serious kidney disorder. The company is currently in the Phase 2 planning stage for this drug and is exploring various development approaches, including a potential expedited path to commercialization. InflaRx also aims to establish proof of concept for izicopan in other complement-mediated kidney diseases, with open-label studies expected to start generating clinical data next year.

Additionally, InflaRx has priced a public offering of 75 million ordinary shares at $2.00 per share, which is anticipated to bring in gross proceeds of $150 million. This offering is expected to close soon, pending customary closing conditions. In preclinical developments, InflaRx reported data indicating low reactive metabolite formation of izicopan in human liver microsomes, suggesting favorable metabolic properties compared to avacopan, an approved treatment for the same condition.

Furthermore, InflaRx has regained compliance with Nasdaq’s minimum bid price requirement, having maintained a closing bid price of $1.00 or greater for ten consecutive business days. These developments highlight InflaRx’s ongoing efforts in drug development and financial positioning.

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