Savara Raises $47 Million in Stock and Warrant Deal

Equities Research  |

We first highlighted Savara (Nasdaq: SVRA) in this space in July 2017 as a company worth watching in the pulmonary disease market. Savara raised $47 million in gross proceeds this week in a follow-on offering of common stock and warrants. The company sold 5.25 million common shares at $7.85 and warrants to an existing investor to purchase 775,000 shares of common at $7.84 per warrant - $7.85 minus the one cent exercise price per each pre-funded warrant.

The company has made notable clinical and corporate progress since July, which has fueled a 40% rally in the stock during the period:

  • Initiated its Phase III, randomized, double-blind, placebo-controlled study of AeroVanc for the treatment of persistent methicillin-resistant Staphylococcus aureus (MRSA) lung infection in individuals living with cystic fibrosis (CF).
  • Completed patient enrollment in a multicenter, randomized, double-blind, placebo-controlled Phase 2 trial of Aironite, a sodium nitrite solution for inhalation via nebulization, in patients with heart failure with preserved ejection fraction (HFpEF).
  • Uplisted to the Nasdaq Global Select Market

Pipeline

Source: Savara

Upcoming Milestones

Though the company has two candidates - Molgradex and AeroVanc - that are further along in clinical trials, it's the progress of Aironite that investors will be tracking as it's the next clinical candidate for which any top line results will be available. Expect those in the first half of 2018.


Source: Savara

We note that the follow-on offering was priced yesterday morning at a significant discount to Tuesday's $9.21 close - a reasonable haircut considering the stock's relatively light volume. Encouragingly, the stock has traded steadily at a premium to the offering price over the past two days. We'll continue to keep close watch on Savara's clinical progress.



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Companies

Symbol Name Price Change % Volume
SVRA Savara Inc. 9.49 -0.52 -5.19 127,673 Trade

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