NEW YORK – Rain Therapeutics on Friday said it is expecting to raise gross proceeds of $50 million by selling 6,861,080 shares of common stock and 1,715,250 shares of nonvoting common stock at $5.83 per share in a registered offering.
Investors participating in the offering include Deerfield Management, Adage Capital Partners, BVF Partners, Boxer Capital, Janus Henderson Investors, Cormorant Asset Management, and Samsara BioCapital. Rain has also given the underwriters a 30-day option to purchase up to 1,286,449 additional shares of common stock at the offering price. The shares of nonvoting common stock can be converted into an equal number of shares of common stock.
Guggenheim Securities is the bookrunning manager for the offering and H.C. Wainwright and JonesTrading Institutional Services are co-lead managers. The offering is expected to close on Nov. 8.
As of Sept. 30, Rain had $90.7 million of cash, cash equivalents, and short-term investments.
Rain, based in Newark, California, will use the proceeds to further develop the precision oncology drugs in its pipeline and prepare its lead therapeutic agent for commercial launch, as well as for working capital and general corporate purposes. The firm's lead candidate, the MDM2 inhibitor milademetan, is undergoing a Phase II MANTRA-2 basket trial in MDM2-amplified solid tumors and a Phase III registrational trial in well-differentiated and de-differentiated liposarcoma. The firm is also studying milademetan in combination with Roche's Tecentriq (atezolizumab) in advanced solid tumors with CDKN2A loss and wild-type p53.
On Friday, Rain also reported preliminary data from the MANTRA-2 basket trial in MDM2-amplified solid tumors. Of 10 evaluable patients, there have been two unconfirmed partial responses in pancreatic and lung tumors and two other patients experienced tumor regression on milademetan.
The company announced it is deprioritizing the Phase II MANTRA-3 study of milademetan in Merkel cell carcinoma. Instead, it will focus on conducting trials in liposarcoma and MDM2-amplfied solid tumors, along with the planned combination study with Tecentriq in solid tumors with CDKN2A loss.
In addition to milademetan, the company is in the preclinical stage of developing a drug targeting the DNA damage response pathway gene RAD52.