Media Coverage

KindredBio to use $44m offering for commercial boost

Jun 21, 2018 - Animal Pharm
By Joseph Harvey
Animal Pharm
June 21, 2018

Kindred Biosciences is hoping to raise around $44 million to support its growing commercialization focus with a public offering of shares.

The San Francisco-based business is offering 4,631,578 shares of common stock at a public price of $9.50 per share. The offering is expected to close on June 22, 2018.

KindredBio will use the proceeds to expand its commercial infrastructure ahead of future product approvals and launches. The funds will also be directed to growing its manufacturing capacity and development of its pipeline therapeutic candidates.

In light of this offering, KindredBio has terminated its 'at-the-market' equity offering program with investment banks B Riley FBR and Oppenheimer & Company.

Earlier this month, the company said it expects to secure its second US FDA approvalof 2018 by receiving authorization for Zimeta IV. KindredBio gained its debut authorization for Mirataz earlier this year, thus confirming its transformation from a start-up into a commercial entity.

As the firm has neared the commercialization of its first companion animal therapeutics, its share price has increased. In May, the company's share value grew significantly after Mirataz was approved.

Since then, KindredBio's share price has climbed above the $11 mark for the first time since August 2014. As Animal Pharm went to press, the company's share price was around $10.50.

The firm's current share price sits at around the midway point between its highest valuation (about $24 per share in March 2014) and its lowest (between $3 and $4 throughout the first half of 2016). During this time, KindredBio has reorganized its product pipeline following trial setbacks, built a manufacturing infrastructure and taken itself to the cusp of its first meaningful revenues.

The company's share price is up by more than 100% compared to January 2017.

Reprinted with permission of Animal Pharm News




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