Celsion Withdraws Stock Offering
Celsion Corporation (NASDAQ:CLSN) shares are on a massive upswing, climbing nearly 110% in pre-market trading Friday on the heels of the company’s filing for a stock offering withdrawal. Initially, CLSN had filed an S-1 statement a little over two months ago with the Securities and Exchange Commission (SEC), amending this sale of shares this week for a revised 2.45 million common shares offering coupled with pre-funded and base warrant options to purchase 4 million plus shares. In the filing today, the oncology drug firm indicated the intent behind withdrawing plans for the stock offering stems from no longer pursuing the proposed offering. This follows Celsion having just retaken the minimum-bid compliance for Nasdaq’s continued listing of the company’s shares, riding on back of a 1-for-14 reverse stock split from May 30th.
Maxim analyst Jason Kolbert recently wrote, “Our concerns around capital requirements to operate the company are at a heightened level. While we believe in the fundamentals of the therapeutic products (ThermoDox and GEN-1) we are worried around the lack of near term catalysts to support attractive deal terms. As such the only alternatives may be highly structured – (dilutive to existing shareholders) capital.”
“Micro-cap biotechnology stocks are currently facing a tough market environment for capital raising and Celsion has already completed a structured capital raise. News of an S1 filing suggests to us that Celsion’s options are likely to continue to become increasingly difficult,” the analyst added.
Adamis Pharmaceuticals Wins FDA Approval
Adamis Pharmaceuticals Corp (NASDAQ:ADMP) announced yesterday that the FDA has approved the company’s epinephrine injection for the emergency treatment of allergic reactions (Type I) including anaphylaxis, sending shares skyrocketing over 50%. The product will be sold under the name Symjepi.
Symjepi provides two single dose syringes of epinephrine (adrenaline), which is considered the drug of choice for immediate administration in acute anaphylactic reactions to insect stings or bites, allergic reaction to foods (such as nuts), drugs and other allergens, as well as idiopathic or exerciseinduced anaphylaxis.
CEO Dennis J. Carlo stated, “We are very excited by this approval, and at the same time, are already preparing to submit our second NDA to the FDA. This second submission is for the junior version of Symjepi. We are committed to helping patients by providing them with additional therapeutic choices. With an anticipated lower cost, small size and user-friendly design, we believe Symjepi could be an attractive option for a significant portion of both the retail (patient) and non-retail (professional) sectors of the epinephrine market. We are currently in the process of exploring all of our commercialization options and in discussions with potential partners in order to facilitate broad patient access to this new epinephrine treatment option and to maximize the value of our important asset. In the interim, we expect to build inventory levels in preparation for an anticipated launch in the second half of this year.”
Maxim analyst Jason Kolbert commented, “Adamis’ valuation is compelling, in our view. At just over a $100M market capitalization, cash on the balance sheet and an alternative to EpiPen we see the story getting better and better.”