The shares of Immuno oncology specialist, Synlogic (SYBX), have turned against the stock following a $45 million common stock capital raise.
Synlogic, Inc. (SYBX) has recently made highlights from its ongoing studies on two of its medicines. The SYBX stock took that news quite well, however, the shares are down on September 23, 2021, after the company announced a common stock offering.
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Synlogic, the clinical-stage company, has priced the public offering of its 15 million common stock shares. The company will be floating the shares in the market at a per-share offering price of $3, which means that SYBX will accumulate total gross proceeds of almost $45 million. The gross proceeds will exclude the commissions, underwriting discounts, and other offering expenses payable.
The company will be selling all the common stock shares to the public. Moreover, Synlogic has permitted a 30-day option to the underwriter for an additional purchase option of 2,250,000 shares. Synlogic expects the public offering to close on September 27, 2021, based on the customary closing conditions.
Lately, Synlogic has had some good things to share with its customers and investors. The company announced positive data from clinical studies of both SYNB1618 and SYNB1934. These two investigational Synthetic Biotic™ medicines are under trials for the treatment of phenylketonuria (PKU).
The SYNB1618 reflected clinically encouraging reductions of phenylalanine at several dose levels, across various time points. While the SYNB1934 which is an optimized strain evolved from SYNB1618 showed two-fold higher activity than SYNB1618 in a head-to-head Phase 1 study in healthy participants.
The company expects SYNB1934 to lead the medicine into the Phase 2 SynPheny-1 trial with final results expected in the first half of 2022. Whereas, the promising data from both SYNB1618 and SYNB1934 programs – Synlogic plans to begin Phase 3 trials soon.
The CEO of the company, Dr. Aoife Brennan, stated that the data from the first two phases has substantial aspects. The data strongly supports the ability of Synthetic Biotic medicines to make a meaningful difference to patients. Therefore, they are optimistic and intend to complete the Phase 2 SynPheny-1 study and advance with the PKU program.
A couple of weeks ago, Synlogic updated regarding another investigational Synthetic Biotic medicine for the treatment of Enteric Hyperoxaluria (HOX). The company presented the data of its SYNB8802 at the American Urological Association (AUA) Annual Meeting.
HOX is a metabolic disorder originated by extensive absorption of dietary oxalate, which is often present in many common foods including chocolate, nuts, and leafy greens. The SYNB8802 medicine has come out with efficient results from trials in healthy volunteers. So, the medicine could target this potential market and benefit the company.
Synlogic, Inc. (SYBX) is proceeding with its ongoing projects and hopes to balance its cash flows with the success of these medicines in the long term.
