InflaRx launches public offering of shares and warrants

JENA, Germany - InflaRx N.V. (NASDAQ:IFRX), a biopharmaceutical company focusing on anti-inflammatory therapeutics, has initiated a public offering of its ordinary shares along with pre-funded warrants to purchase additional shares. The move comes as the stock trades near its 52-week high of $2.81, having delivered an impressive 86% return over the past six months. According to InvestingPro analysis, the stock appears slightly overvalued at current levels. The offering announcement, made today, is contingent on market conditions, and the company has not guaranteed the completion or the specifics of the offering.

The purchase price for each pre-funded warrant will be the public offering price of the ordinary shares minus $0.001, which will also serve as the exercise price for each warrant. InflaRx will be the sole seller of all ordinary shares and pre-funded warrants in this offering. Additionally, the underwriters may be granted an option to buy extra ordinary shares at the public offering price, less the underwriting discount, within a 30-day window.

The company has stated that the net proceeds from the offering will primarily support the clinical development of its pipeline candidates, including vilobelimab and INF904, as well as for general corporate purposes. This capital raise comes at a crucial time, as InvestingPro data indicates the company is quickly burning through cash, despite maintaining more cash than debt on its balance sheet. Guggenheim Securities, LLC has been named the book-running manager for the offering.

A shelf registration statement regarding the sale of these securities was approved by the U.S. Securities and Exchange Commission on July 11, 2023. The offering is to be made exclusively through a prospectus and prospectus supplement, which have been filed with the SEC and are accessible on their website.

InflaRx specializes in the development of inhibitors targeting the complement activation factor C5a and its receptor C5aR, which are implicated in various inflammatory diseases. Their lead product candidate, vilobelimab, is an anti-C5a monoclonal antibody, and INF904 is a small molecule inhibitor of the C5a receptor.

The company was established in 2007 and maintains offices in Germany and the United States. While the company’s current ratio of 5.31 indicates strong short-term liquidity, InvestingPro analysis reveals that analysts have recently revised their earnings expectations downward, with the company not expected to be profitable this year. This announcement includes forward-looking statements which are subject to risks and uncertainties, and the company cautions that actual results could differ materially from those projected. For deeper insights into InflaRx’s financial health and 15 additional exclusive ProTips, consider an InvestingPro subscription.

The information provided is based on a press release statement from InflaRx N.V.

In other recent news, InflaRx NV has been making significant strides in the pharmaceutical industry. The European Commission approved the company’s treatment for COVID-19 related complications, Gohibic, marking it the first and only treatment approved in the European Union for SARS-CoV-2-induced acute respiratory distress syndrome (ARDS). This decision was influenced by positive results from the Phase 3 PANAMO trial. H.C. Wainwright, in response, reaffirmed its Buy rating for InflaRx.

InflaRx has also initiated a Phase 2a basket study for its drug candidate INF904, focusing on the treatment of chronic spontaneous urticaria (CSU) and hidradenitis suppurativa (HS). H.C. Wainwright maintains its Buy rating, highlighting the long-term sales growth potential for InflaRx shares with INF904 therapy.

Lucid (NASDAQ:LCID) Capital Markets initiated coverage on InflaRx with a Buy rating, citing the company’s focus on developing vilobelimab and INF904 for treating various inflammatory diseases. The firm anticipates key potential catalysts, including interim Phase 3 data for vilobelimab expected in the second quarter of 2024, and proof-of-concept data for INF904 anticipated in the summer of 2025.

These recent developments emphasize InflaRx’s commitment to advancing treatments for inflammatory diseases and the positive outlook from analysts at H.C. Wainwright and Lucid Capital Markets.

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