NEWTOWN, Pa. - Traws Pharma, Inc. (NASDAQ: TRAW), a clinical-stage biopharmaceutical company with a market capitalization of $40.6 million, announced today it has reached agreements for financing up to $72.6 million to support its drug development programs, particularly its oral treatment for respiratory viral diseases like bird flu. The company’s stock has shown strong momentum, gaining over 20% in the past six months according to InvestingPro data. The company will receive an initial $20 million upon closing, with the potential for an additional $52.6 million contingent on the exercise of warrants within a specified timeframe.
The funding, provided by a mix of new and existing institutional investors, is expected to extend Traws Pharma’s financial runway into the first half of 2026. This financing comes at a crucial time, as InvestingPro data shows the company has been rapidly burning through cash, with negative free cash flow of $30.18 million in the last twelve months. The investors include noted firms such as Perceptive Advisors and OrbiMed. The closing of the offering is anticipated to occur on or about December 31, 2024, subject to customary conditions.
Traws Pharma’s Executive Chairman, Iain D. Dukes, expressed gratitude for the investment, which he believes underscores the potential of their lead drug candidate, Tivoxavir Marboxil. The drug has shown promise in preclinical studies, exhibiting potent inhibition of bird flu viruses and drug-resistant influenza viruses.
The company’s Chief Medical (TASE:PMCN) Officer, Robert R. Redfield, MD, underscored the urgency of advancing treatments for bird flu, citing increasing human infections and the potential for epidemic spread. This concern is heightened by the recent state of emergency declared in California due to bird flu’s impact on dairy cattle.
Tivoxavir Marboxil is positioned to capitalize on the substantial antiviral market, with its Phase 1 pharmacokinetic profile suggesting the possibility of a single dose regimen. Further development is supported by the drug’s tolerability and efficacy in preventing lethal influenza in animal models.
Traws Pharma plans to host an update call on Tivoxavir Marboxil in the first quarter of 2025, with details to be provided later. Tungsten Advisors served as the sole placement agent for the offering. The company has committed to filing a registration statement with the SEC for the resale of securities sold in the private placement.
This announcement is made in compliance with regulatory standards and is not an offer to sell or a solicitation of an offer to buy any securities. The information is based on a press release statement. For deeper insights into Traws Pharma’s financial health, valuation metrics, and 12 additional ProTips, visit InvestingPro, where analysts project the company to achieve profitability this year.
In other recent news, Traws Pharma Inc. has reported significant developments. The company has completed Phase 1 dosing of its investigational oral treatment, tivoxavir marboxil, for H5N1 bird flu. The clinical-stage company’s trial in healthy volunteers showed the drug was safe and maintained effective drug levels in the blood for over 23 days. Traws Pharma also announced plans to begin a Phase 2 study in the first half of 2025.
In addition, Traws Pharma is facing potential delisting from the Nasdaq Capital Market due to not meeting the minimum stockholders’ equity requirement. However, a merger with Onconova Therapeutics (NASDAQ:TRAW) and Trawsfynydd Therapeutics is expected to improve Traws Pharma’s financial position.
On the personnel front, board member Luba Greenwood has resigned, and the company has seen the departure of Steven M. Fruchtman, the President and Chief Scientific Officer, Oncology. To maintain robust financial practices, Traws Pharma has engaged KPMG LLP as its new independent registered public accounting firm and has amended its corporate bylaws, lowering the quorum requirement for stockholder meetings.
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