Reviva Pharmaceuticals announces public offering of common stock

CUPERTINO, Calif. - Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH), a pharmaceutical company with a market capitalization of $35.6 million, announced today its intention to offer shares of common stock and warrants in a public offering, according to a company press release.According to InvestingPro data, the stock has seen a significant 19% return over the last week, though it remains well below its 52-week high of $4.28.

The late-stage pharmaceutical company, which develops therapies for central nervous system, inflammatory and cardiometabolic diseases, stated that all securities in the offering will be sold by Reviva. A.G.P./Alliance Global Partners is serving as the sole placement agent. InvestingPro analysis shows the company maintains a positive cash position relative to debt, though its current ratio of 0.54 indicates potential liquidity challenges.

Reviva plans to use the net proceeds to fund research and development activities and for working capital and general corporate purposes. The company noted that the offering is subject to market conditions, with no guarantee regarding completion, size, or terms. Analyst price targets for the stock range from $3 to $16, suggesting significant potential upside from current levels, according to InvestingPro data.

The securities will be offered through an effective shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission on February 2, 2025, and declared effective on February 13, 2025.

Reviva’s current pipeline includes two drug candidates: brilaroxazine (RP5063) and RP1208. Both are new chemical entities discovered in-house, with composition of matter patents granted in the United States, Europe, and several other countries.

The company emphasized that the announcement does not constitute an offer to sell or solicitation of an offer to buy the securities in any state where such offer, solicitation, or sale would be unlawful prior to registration or qualification under state securities laws.

In other recent news, Reviva Pharmaceuticals Holdings Inc. announced the successful completion of a year-long Phase 3 study for its schizophrenia drug, brilaroxazine. The study demonstrated that the drug maintained efficacy and exhibited a well-tolerated safety profile, with no serious adverse events reported. This development is crucial for the company’s New Drug Application submission to the FDA. Despite these promising results, Reviva faces financial challenges, as highlighted by Boral Capital, which reduced the company’s stock target from $8 to $3 due to concerns over its cash reserves. Analysts at Benchmark also adjusted their outlook, lowering the price target from $17 to $14 while maintaining a Speculative Buy rating. They noted that Reviva concluded the quarter with $13.5 million in cash but will likely need additional funding to progress its clinical programs. Reviva is considering partnerships and licensing opportunities to secure necessary capital. The company is also preparing for significant upcoming events, including the release of the full dataset from the ongoing open-label extension trial and the initiation of the RECOVER-2 trial.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.