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LA JOLLA, Calif. - CalciMedica Inc. (NASDAQ:CALC), a clinical-stage biopharmaceutical company specializing in therapies for inflammatory and immunologic diseases with a current market capitalization of $30.6 million, announced on Wednesday it has secured a credit facility worth up to $32.5 million from Avenue Venture Opportunities Fund II, L.P. According to InvestingPro analysis, the company appears undervalued compared to its Fair Value, with analyst price targets ranging from $13 to $20. The initial tranche of $10 million has been fully funded, with the possibility of accessing additional tranches totaling $22.5 million upon achieving certain milestones.
This new credit facility, with a term of 3.5 years, aims to support the ongoing development of CalciMedica’s product pipeline, which includes their lead product candidate, Auxora, currently undergoing clinical trials. According to CalciMedica’s CEO Rachel Leheny, Ph.D., this strategic financial maneuver is set to extend the company’s cash runway into mid-2026, well beyond the expected data readout from their Phase 2 KOURAGE trial for Auxora, which is being tested in patients with acute kidney injury and hypoxemia. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 4.15, though it’s currently burning through cash rapidly - one of several key insights available to Pro subscribers.
The credit agreement does not impose a minimum cash requirement or other financial covenants on CalciMedica, offering the company additional flexibility as it approaches significant milestones. These milestones include the anticipated results from the KOURAGE trial and discussions with the FDA regarding a Phase 3 program for acute pancreatitis.
Avenue Venture Opportunities Fund, part of Avenue Capital Group, specializes in providing financing solutions to high-growth companies. Chad Norman, Senior Portfolio Manager, expressed enthusiasm for supporting CalciMedica’s mission to address unmet patient needs and the potential of Auxora in treating acute inflammatory diseases.
CalciMedica’s lead candidate, Auxora, has shown positive clinical results in trials for various inflammatory and immunologic illnesses, including acute pancreatitis and COVID pneumonia. The company is also conducting a Phase 1/2 trial in pediatric patients with asparaginase-induced pancreatic toxicity.
The information disclosed in this article is based on a press release statement from CalciMedica. The company, which was founded by scientists from Torrey Pines Therapeutics and the Harvard CBR Institute for Biomedical Research, is headquartered in La Jolla, California. Despite a challenging market environment that has seen the stock decline by about 56% over the past six months, InvestingPro subscribers have access to over 30 additional financial metrics and analysis tools to evaluate the company’s potential. For more details on their ongoing research and clinical trials, visit CalciMedica’s website.
In other recent news, CalciMedica Inc. reported significant findings from its CARDEA trial, revealing a notable reduction in mortality among acute kidney injury (AKI) patients treated with its drug Auxora. The trial showcased a 62.7% relative decrease in mortality by day 30, continuing through day 60, in a subset of patients. This result is part of CalciMedica’s ongoing efforts, with the Phase 2 KOURAGE study expected to conclude in 2025. In addition to clinical trial updates, CalciMedica announced the appointment of Dr. Alan Glicklich to its Board of Directors. Dr. Glicklich brings over two decades of biotech industry experience and is expected to enhance the company’s clinical development strategies. His appointment follows the resignation of Eric Bjerkholt from the board, effective January 15, 2025. Dr. Glicklich’s role as a Class I director is set to last until the 2027 annual meeting of stockholders. These developments reflect CalciMedica’s ongoing commitment to advancing its therapeutic offerings and strengthening its leadership team.
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