The Princeton, New Jersey company is offering 2.5 million shares of its stock at a price of $4 per share, which is substantially below Tuesday’s closing price of $5.90.
Advaxis’s stock price has been artificially boosted in recent days by a 1-for-15 reverse stock split which took effect late last month.
Investors failed to applaud the offering’s terms, sending Advaxis shares down 30% to $4.10 in morning trade.
The biotech hopes to use net proceeds from its latest offering to fund its ADX-HOT neoantigen-directed program for new cancer types as well as invest in ADX-PSA, its treatment for prostate cancer, and ADXS-NEO which takes aim at multiple cancers.
Advaxis won applause earlier in the week from investors after unveiling promising data from a Phase 1/2 Keynote-046 evaluating its cancer immunotherapy ADXS-PSA for the treatment of advanced prostate cancer.
The 50-patient study is evaluating ADX-PSA alone as a treatment for metastatic prostate cancer, and in combination with Keytruda, Merck's blockbuster anti-PD-1 cancer therapy.
The data for 37 patients taking part in the study showed a median overall survival rate of 21.1 months, which compares favorably to traditional therapies.
News of the promise of clinical findings for ADXS-PSA comes on the heels of preliminary data from a Phase 1 trial of ADX-NEO, another of the company’s cancer immunotherapies, showing “substantial” anti-tumor activity.
Data from both studies were presented at the American Association for Cancer Research’s annual meeting taking place this week in Atlanta, Georgia.
Contact Ellen Kelleher at [email protected]