CorMedix prices $85 million public offering of common stock

BERKELEY HEIGHTS, N.J. - CorMedix Inc. (NASDAQ:CRMD), a biopharmaceutical company with a market capitalization of $1.01 billion, has priced an underwritten public offering of 6,604,507 shares of its common stock, expected to generate approximately $85 million in gross proceeds, according to a press release statement. According to InvestingPro data, the company’s stock has shown remarkable strength, delivering a 245.5% return over the past year.

The biopharmaceutical company has granted underwriters a 30-day option to purchase up to an additional 15% of the offered shares. The offering is expected to close around June 30, 2025, subject to customary closing conditions.

RBC Capital Markets is serving as sole bookrunner for the offering, while Truist Securities, Citizens Capital Markets, and Needham & Company are acting as capital markets advisors.

CorMedix intends to use the net proceeds for general corporate purposes, including working capital, research and development expenses, and potential strategic transactions such as acquisitions or collaborations.

The securities are being offered through a shelf registration statement filed with the Securities and Exchange Commission on May 6, 2024, which became effective on May 22, 2024.

CorMedix focuses on developing and commercializing therapeutic products for life-threatening conditions. The company received FDA approval for its lead product DefenCath (taurolidine and heparin) in November 2023 and launched it in inpatient settings in April 2024 and outpatient settings in July 2024.

The company plans to commence clinical studies for DefenCath in Total Parenteral Nutrition and Pediatric patient populations in 2025 and develop it as a catheter lock solution for other patient populations.

In other recent news, CorMedix Inc. announced its intention to offer $85 million in common stock through an underwritten public offering, with RBC Capital Markets as the sole bookrunner. The company plans to use the proceeds for general corporate purposes, including working capital and research and development expenses. Shareholders recently approved key proposals at the company’s annual meeting, including the election of directors and the ratification of its independent auditor. Additionally, CorMedix has expanded its agreement with a Large Dialysis Organization, expecting a significant increase in the implementation of its product, DefenCath, which could lead to increased revenue. Following this development, the company raised its second-quarter net sales guidance from $31 million to a range of $35 million to $40 million. RBC Capital raised its price target for CorMedix from $13 to $17, maintaining an Outperform rating. The firm cited expected growth in the outpatient segment and other business trends as reasons for its positive outlook. CorMedix is also preparing for clinical studies of DefenCath in new patient populations in 2025.

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