CytoDyn Inc (OTCQB:CYDY), a biotechnology company developing its flagship drug Vyrologix (leronlimab-PRO 140) for multiple indications, announced Monday that it has completed an additional potentially non-dilutive convertible debt offering with an institutional investor, which provides "$25 million of immediately available capital."
The note has a two-year maturity, bears interest at the rate of 10% per annum and is secured by assets belonging to the company, excluding its intellectual property. The note may be converted at the option of the investor into shares at a conversion price of $10.00 per share.
In a statement, CytoDyn CEO Nader Pourhassan said: “We are very pleased with the institution’s demonstration of confidence and their understanding of leronlimab’s positioning on its regulatory trajectory. This infusion of capital will help ensure we have sufficient quantities of leronlimab available upon any potential approvals for COVID-19 treatment.”
READ: CytoDyn files new protocol with FDA for four doses of leronlimab for critically ill coronavirus patients
“We believe leronlimab’s power to help COVID-19 critically ill population is unmatchable. In the interim, we are very excited with the opportunity to sell leronlimab in the Philippines under Compassionate Special Permit (CSP) and potentially other countries under similar situations," he added.
CytoDyn also revealed on Monday that the CSP patient in the Philippines “improved significantly 35 hours after receiving a 700 mg injection of Vyrologix” under a licensed physician’s request for CSP to treat COVID-19 patients.
According to the company, the CSP patient spent 10 days on high-flow oxygen, was treated with multiple doses of dexamethasone and then tocilizumab during that period and did not improve.
“The physician in charge of the patient was pleased to report that, 35 hours after the subcutaneous injection of leronlimab, the patient was removed from high-flow oxygen and was breathing on his own,” said the company in a statement.
The patient was discharged from the hospital on April 3.
“We are very pleased to see leronlimab used in the first patient in the Philippines. We are ready to ship more product for any patients, who request leronlimab under CSP in the Philippines,” said Pourhassan. He reiterated the company's commitment to the Philippines “of at least 100,000 doses upon the FDA Philippines granting Emergency Use Authorization (EUA)."
The Vancouver, Washington-based biotechnology company's leronlimab works by mitigating what is known as the cytokine storm, a hyperactive immune response that can cause inflammation, fatigue and, in severe cases, organ failure.
Aside from COVID-19, the FDA has granted Fast Track designation to CytoDyn for two potential indications of leronlimab for critical illnesses. The first is a combination therapy with HAART for HIV-infected patients and the second is for metastatic triple-negative breast cancer.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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