Zosano Pharma Corp (NASDAQ:ZSAN) has set the price of $5 for each share of the common stock for sale to the public. As per the filing to the SEC on December 22, 2017, the company has decided to sell 10,000,000 shares of the common stock with effective from March 28, 2018. The offer closes on April 3, 2018.
The company is expected to mobilize funds worth $50 million through the offering of common stock. Zosano will use the proceeds of the sale for the long term safety study of M207, a lead product candidate, and for the general corporate expenses as well as for the working capital.
Zosano will also sell additional shares of 1,500,000 at $5 per share to the underwriters in 30 days. The company has assigned the task of share sale to the BTIG, LLC, which will act as a book running manager for the offering.
The clinical stage biopharmaceutical company Zosano is engaged in providing the patients with rapid systemic administration of the therapeutics with the help of its ADAM technology. M207 is used for the long term study of the migraine treatment.
The company is conducting a safety study using M207-ADAM on patients suffering from a migraine. It will administer the dosage of 3.8 mg of zolmitriptan to the migraine patients, who are suffering from migraine attack a minimum of two times in a month.
According to a communicative of the company, the study will be conducted on a minimum of 150 patients suffering from migraine over a 6 month period. On an annual basis, the evaluation of the M207-ADAM will be conducted on 50 patients at 31 sites across the US.
Zosano may enroll more patients in the evaluation study to get a definitive conclusion of the results with a robust data. The main aim of the company is to ascertain the safety of the drug in a 6 and 12 month study.
According to a recent update of the study on M207-ADAM, the company has administered the drug to 103 qualified patients. It has also received the consent of 77 patients for the evaluation in 2 weeks.
Since the beginning of the study, the company has treated 278 migraines in patients.