Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) Closes Convertible Preferred Stock Financing

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Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) a major developer of investigational “RNAi” treatments, has closed its stock purchase deal for the “Preferred Stock” sale to a group of new and current stockholders directed by Bain Capital Life Sciences. Subsequent this deal, it recorded gross proceeds of as much as $70 million.

The highlights

As per the “Preferred Stock” deal, Adam M. Koppel, M.D., Ph.D., who is a MD of Bain Capital, had become a member of Dicerna’s Board. At the closing, the firm released Preferred Stock 700,000 shares, which can be converted into stock for $3.19/share. Dicerna’s board has nine members. The company plans to use cash proceeds from the deal to support its GalXC™ pipeline plans, for clinical as well as pre-clinical work.

Douglas M. Fambrough, Ph.D., who is the CEO of company, reported that last year was extremely significant for them as they completed evolution to GalXC™ RNAi know-how base and focused their plans on driving the growth of GalXC pipeline programs.

GalXC ability to allow progression of subcutaneously presented RNAi therapeutics to control any disease-causing gene in the liver shows great prospects for growth. Convertible preferred financing further progresses the use of GalXC RNAi know-how, which will be vital to continuing their strategic plan and product pipeline in the next two years.

The strategic plan focuses on internal growth of drug candidates for rare diseases that are molecularly as well as genetically defined, shows grave unmet medical need, and presents resourceful development paths. Dicerna’s prime candidate drug, DCR-PHXC, for initial hyperoxaluria type I, and next development plan for an unnamed rare disease, fall into this section.

Moreover, the management is looking for major associations for plans that address challenging diseases with many gene dysfunctions and extended patient populations.

In the last trading session, the stock price of Dicerna gained more than 1% to close the day at $3.10.

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