Humanigen HGEN Stock News

Humanigen Inc (OTCMKTS: HGEN) is running for the top in the market this morning, trading on gains of nearly 40%. The gains come after the company announced a deal worth $72 million. Here’s what’s going on:

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HGEN Stock Is Running For The Top

In the press release, Humanigen said that it has priced a private placement of about $72 million of common stock. The company said that J.P. Morgan Securities LLC is acting as the placement agent for the financing.

In the financing, the investors include Venrock Healthcare Captial Partners, Surveyor Capital, HealthCar, Valiant Capital Partners, First Light Asset Managmenet, and Ghost Tree Capital. Moreover, HGEN said that Posinelli PC is serving as its legal advisor in the deal.

The company went on to explain that proceeds from the financing will be used to develop its monoclonal antibody portfolio and for general corporate purposes. The development includes the pivotal Phase III trial of lenzilumab for the prevention and treatment of cytokine storm in COVID-19 pneumonia.

Moreover, HGEN said that the funds will be used for the development of the company’s pipeline. This includes ZUMA-19, a CAR-T study involving lenzilumab being conducted in collaboration with Kite Pharma, a Giliad Sciences company.

In a statement, Dr. Cameron Durrant, CEO at HGEN, had the following to offer:

We are pleased to announce this financing that incorporates some of the most respected and knowledgeable specialized healthcare investors in the world. We appreciate our new investors’ validation of Humanigen’s approach to GM-CSF pathway science and its potential impact in COVID-19 patients, as well as other conditions with high unmet medical need. With the support of our existing and new investors, we are also planning to list our common stock on a national securities exchange in the coming months.

This News Is Huge

The news released by Humanigen is massive. First and foremost, the financing announced represents about a third of the market cap of the company. However, it’s not just the money, but what the money is being used for that’s exciting investors.

Ultimately, the funding will be used to continue development on a late-stage treatment for COVID-19 patients. Should the study go well, the treatment could hit the market as soon as next year. Considering the state of the pandemic, this is overwhelmingly exciting news.

So, if HGEN stock isn’t on your watchlist yet, it’s time to add it!

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