BARDA (Biomedical Advanced Research and Development Authority) awarded a cash share award of $86.8 million to ContraFect Corp (NASDAQ:CFRX). ContraFect will use $9.8 million of the cash award for the DISRUPT Phase 3 clinical study’s initial funding.
ContraFect will receive additional funding
ContraFect will conduct Phase 3 Direct Lysis of Staph aureus Resistant Pathogen Trial (DISRUPT) in patients suffering from Staph aureus bacteremia (SAB). On receiving the Phase 3 DISRUPT trial data, BARDA will award additional funding to ContraFect to advance exebacase.
Chairman of ContraFect, Roger J. Pomerantz, said the company is excited and grateful to BARDA for funding to advance the Phase 3 clinical study and qualify for product approval. The funding is on the backdrop of Exebacase receiving BTD (Breakthrough Therapy Designation) from the US FDA in 2020.
Exebacase plays a vital role in Phase 3 clinical trials and helps ContraFect in its DLA platform find an innovative medicine to cure life-threatening infectious diseases. Roger said the BARDA award helps it expedite enrollment in Phase 3 clinical study as ContraFect moves towards IFA (interim futility analysis) and is expected in H2 2021.
Gary Disbrow, Director of BARDA, said the growth of antibiotic-resistant infections is alarming, and developing counteracting medicines is a high priority for the nation in this century.
Pricing for 10 million shares
ContractFect set the pricing of its 10 million common stock under underwritten public offering at $5 for each share. The underwriters also received an option of 30-days to acquire additional 1.5 million shares of ContraFect.
ContraFect will raise a capital of $50 million through this public offering. The company appointed Cantor and SVB Leerink to manage the offering. Mizuho Securities will act as a passive book-running manager.
ContraFect will use the deal’s proceeds for completing the exebacase Phase 3 development program and submit BLA to cure patients with Staph aureus bacteremia.
It will also use Exebacase Phase 1/ 2 clinical trial funds to treat patients with post-operative prosthetic joint infections besides expediting IND enabling activities and clinical trial of CF-370. The company will use the balance funds for general corporate purposes and working capital needs.