NEW YORK – ALX Oncology on Thursday announced a proposed public offering of common stock and pre-funded warrants to fund development of its lead candidate, CD47 inhibitor evorpacept.
The firm, based in South San Francisco, California, has not yet determined the number of shares to be offered or the offering price. The firm’s shares were down around 2 percent at $6.23 in Thursday afternoon trade on the Nasdaq.
ALX intends to grant the underwriters a 30-day option to purchase an additional 15 percent of the shares of its common stock offered in the public offering. Piper Sandler and Cantor are joint bookrunning managers for the offering.
ALX said it will use the proceeds to support ongoing development of evorpacept, including clinical trials targeting market expansion, and for working capital and general corporate purposes. The firm is currently studying evorpacept in several ongoing studies in multiple myeloma, head and neck, gastric, urothelial, and breast cancers.
In May, the I-SPY-P1 breast cancer trial added a study arm evaluating evorpacept with Daiichi Sankyo and AstraZeneca's Enhertu (fam-trastuzumab deruxtecan-nxki) in patients with HER2-positive and HER2-low breast cancer. ALX has also partnered with other pharma firms to study evorpacept combinations including with Merck's Keytruda (pembrolizumab) in head and neck cancer, Zymeworks' HER2-targeting agent zanidatamab in HER2-expressing cancers, Genentech's Herceptin (trastuzumab) plus Eli Lilly's Cyramza (ramucirumab) in gastric cancer, and with Astellas' and Seagen's Padcev (enfortumab vedotin-ejfv) in urothelial cancer.