CEL-SCI Corporation (NYSE American: CVM) announced the closing of its best-efforts public offering of 6 million shares of common stock at $1.20 per share, generating gross proceeds of approximately $7.2 million before fees and expenses. The company stated that net proceeds will be used to support continued development of Multikine, the company's lead investigational immunotherapy, as well as for general corporate purposes and working capital.
Multikine (Leukocyte Interleukin, Injection) is designed to be administered right after diagnosis and before surgery, radiotherapy, and chemotherapy. The rationale behind this approach is that boosting a patient's immune system before these treatments damage it should provide the greatest possible impact on survival. Multikine is intended to help the immune system target the tumor at a time when the immune system is still relatively intact, thereby thought to be better able to mount an attack on the tumor.
The drug has been dosed in over 740 patients and received Orphan Drug designation from the FDA for neoadjuvant therapy in patients with squamous cell carcinoma of the head and neck. This designation provides certain incentives to support development of therapies for rare diseases.
The offering was conducted on a best-efforts basis, meaning the underwriters were not obligated to purchase any unsold shares. CEL-SCI expects the funds to extend its cash runway and support key milestones in the Multikine clinical program. The company has operations in Vienna, Virginia, and near Baltimore, Maryland. Further details about the offering and the company can be found in the official press release at https://ibn.fm/T5Ng2.
This capital raise is significant for CEL-SCI as it continues to navigate the late-stage clinical development process for Multikine. The company believes that its approach could offer a new treatment option for head and neck cancer patients, a population with significant unmet medical need. The proceeds will enable CEL-SCI to advance its research and potentially bring Multikine closer to regulatory submission and commercialization.
Investors and industry observers will be watching for updates on the Multikine clinical program, including data from ongoing studies. The successful closing of this offering provides CEL-SCI with additional resources to pursue its development strategy. For more information about CEL-SCI, visit https://cel-sci.com/.
This announcement underscores the continued interest in immunotherapies that leverage the body's own immune system to fight cancer. As CEL-SCI moves forward, its ability to execute on its clinical plans will be critical to its long-term success.
