Aldeyra Therapeutics Inc. (NASDAQ:ALDX) has been very active in the development of novel therapies, which will improve the lives of people suffering from immune-mediated diseases. One of its major accomplishments to date is the identification of an ophthalmic solution for dry eye disease, Reproxalap. The company is now holding onto a possible New Drug Application (NDA) of the eye solution.
The biotech seems to be making big strides with its common stock shares, having reported block sales of an aggregate of 4,580,361 to two prominent investment funds. Perceptive Advisors, LLC, and Avidity Partners Management LP are both focused on healthcare and operate under Aldeyra’s former at-the-market offering program.
Under the watch of a leading sales agent Jefferies, LLC, the cost per share $4.25. The company was able to collect approximately $19.5 million as total gross proceeds. This was before the deduction of the commissions.
The Planned and Strategic Use of the Net Proceeds
The company is hopeful of getting approval of the Reproxalap, which is a covalent inhibitor of reactive aldehyde species (RASP), thanks to the already available NDA. With relevant and multiple clinical trials underway, Aldeyra has laid out specific strategies for accelerating its development from the collected proceeds. Part of the proceeds will also go towards the continued development of Part 1 of the Phase 3 GUARD Trial for proliferative vitreoretinopathy ((PVR)
The company’s management also adds that with the current cash and cash equivalents, it will be able to fund its operations till the end of 2022. This includes debt maintenance as well as working capital.
Orphan Medicinal Product Designation for ADX-2191
ADX-629 has been described as a leading compound targeting RASP. ADX-2191 is an investigational therapy, which prevents PVR. This is very rare but also a serious sight-threatening retinal disease. More often than not, it causes rhegmatogenous retinal detachment surgery.
However, the European Commission has designated it as an orphan medicinal product following an endorsement that it is likely to treat a life-threatening condition.
Statistics have it that in every 10,000 people in the EU, five are victims of PVR. The company says it is optimistic that once approved, ADX-2191 will serve hundreds of people who do not know they are suffering from PVR.