Dermata Therapeutics Announces Pricing of Initial Public Offering
Dermata Therapeutics, a clinical-stage biopharmaceutical company, recently announced the pricing of its initial public offering of 8,000,000 shares of its common stock at a public offering price of $17.00 per share. The gross proceeds from the offering are expected to be approximately $136 million, before deducting underwriting discounts and commissions and other estimated offering expenses.
About Dermata Therapeutics
Dermata Therapeutics is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapies for the treatment of skin diseases. The company is developing a portfolio of novel, small molecule therapeutics that target key pathways involved in skin diseases.
The company’s lead product candidate, DMT310, is a topical, small molecule inhibitor of the Janus kinase (JAK) pathway. DMT310 is being developed for the treatment of atopic dermatitis, a chronic, inflammatory skin disease. The company is also developing DMT401, a topical, small molecule inhibitor of the phosphoinositide 3-kinase (PI3K) pathway, for the treatment of psoriasis.
Initial Public Offering
The initial public offering of 8,000,000 shares of Dermata Therapeutics’ common stock is being made through an underwriting syndicate led by Cowen and Company, LLC, as the sole book-running manager. The offering is expected to close on or about June 10, 2020, subject to customary closing conditions.
In addition, Dermata Therapeutics has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of common stock at the public offering price, less underwriting discounts and commissions.
Use of Proceeds
Dermata Therapeutics intends to use the net proceeds from the offering to fund the clinical development of its product candidates, including the Phase 2 clinical trial of DMT310 for the treatment of atopic dermatitis, the Phase 2 clinical trial of DMT401 for the treatment of psoriasis, and the preclinical development of its other product candidates.
The company also intends to use the net proceeds from the offering for working capital and other general corporate purposes, including the hiring of additional personnel, capital expenditures, and the potential acquisition or in-licensing of additional product candidates or technologies.
Risks and Uncertainties
The offering of Dermata Therapeutics’ common stock involves a number of risks and uncertainties. The company’s product candidates are in early stages of development and may never be approved for commercial use. Even if approved, the company’s product candidates may not be successfully commercialized.
In addition, the company’s product candidates may not be competitive with other products or therapies that are or may become available, and the company may not be able to obtain or maintain adequate levels of reimbursement from third-party payers.
The company may also be unable to obtain additional financing or to successfully complete its clinical trials, or the results of its clinical trials may not be favorable. These and other risks and uncertainties are described in the company’s filings with the Securities and Exchange Commission.
About the Offering
The offering of Dermata Therapeutics’ common stock is being made only by means of a prospectus. A copy of the prospectus may be obtained from Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (631) 274-2806.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Conclusion
Dermata Therapeutics recently announced the pricing of its initial public offering of 8,000,000 shares of its common stock at a public offering price of $17.00 per share. The gross proceeds from the offering are expected to be approximately $136 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The company intends to use the net proceeds from the offering to fund the clinical development of its product candidates, including the Phase 2 clinical trial of DMT310 for the treatment of atopic dermatitis, the Phase 2 clinical trial of DMT401 for the treatment of psoriasis, and the preclinical development of its other product candidates. The offering of Dermata Therapeutics’ common stock is being made only by means of a prospectus. A copy of the prospectus may be obtained from Cowen and Company, LLC.