Advanced Inhalation Therapies yesterday scaled its pending initial public offering by more than ⅔ as it looks to raise funds for its drug delivery device, which is designed to treat severe respiratory infections and lung diseases using a high dose of nitric oxide.
When it registered for the IPO back in August 2015, Rehovot, Israel-based AIT set the high end of the offering at $36 million. Yesterday the company said it plans to float 675,000 shares at $15 apiece, for gross proceeds of $10.1 million.
Losses for AIT last year widened by 200%, to -$4.6 million, or -41¢ per share, compared with 2013. For the 6 months ended June 30, 2015, however, the company pared its losses by -37.5%, to -$2 million, or -20¢ per share, compared to the 1st half of 2014.
AIT is developing a device, the NOxSysBS, which is designed to deliver a gaseous, high-dosage blend of NO, oxygen and air. The FDA has only approved a 20 ppm NO vasodilation treatment, which AIT said isn’t effective in treating microbial infections. The NOxSysBS device is designed to deliver 160 ppm of NO, which the body produces on its own to fight infections.
The company, founded in 2011, plans to list on the NASDAQ exchange under the “AITP” symbol. Joseph Gunnar is the offering’s lone bookrunner, replacing Aegis Capital.
The company said its initial targets are a pair of lower respiratory tract infections, children with bronchitis and lung infections in patients with cystic fibrosis. AIT said it already has a pair of Phase IIa trials under its belt for the initial indications.
“We believe that the results of both trials suggest the safety and efficacy of our product candidates,” the company said in its registration filing. “We have received orphan drug designation by the FDA and the European Medicines Agency for the use of our NOxCF product candidate for the treatment of CF-related lung infections.”
AIT reported that its R&D expenses rose 29.3% to $1.2 million and losses widened 193.6% to -$4.6 million for 2014.