Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) recently announced that it has successfully closed a stock purchase transaction, for the sale of redeemable convertible preferred stock. The company stated that it has received gross proceeds of $70 million, through the sale, which was led by Bain Capital Life Sciences. The sale was made to a number of syndicate new and current investors. However, under the terms of the sale agreement, a managing director of Bain Capital has been added to DRNA’s board of directors and the board has been expanded to nine seats.
As per the details of the transaction, the company sold a total of 700,000 shares of its preferred stock, which are also convertible at $3.19 per share. Dicerna has further revealed that it plans to use the proceeds, from the transaction, to further develop its GalXC pipeline programs. This would include clinical and pre-clinical work, regarding the platform, as well as general corporate purposes of the company. It should be noted here that in a recent filing of its 4Q2016 financial results, DRNA noted that its cash position was at $45.9 million, as compared to $94.6 million, a year ago.
In addition to this, Dicerna also noted, in its 4Q2016 filing, that it has continued to optimize the GalXC platform, during the FY2016. As such, DRNA has been successful in expanding its pre-clinical pipeline of product candidates. The pipeline is long-acting and very specific for targeting diseases in the liver. Currently, the company has made a total of four drug development programs, its priority, which reflect a high probability of success. The list includes DCR-PHXC, DCR-PCSK9, DCR-HBV and an undisclosed rare disease program. It is expected that the company would file its first IND, with the FDA, by the end of FY2017, with follow-up INDs in FY2018 and 2019.
Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) closed at a share price of $3.33, at the end of the April 28 trading session, 1.48% lower than the session before.