Cadrenal Therapeutics downsizes IPO, looks to raise $7 million

There has been an increase in the number of pharma companies taking the IPO route to enhance their research and development activities — the trend is continuing in 2023. There are many healthcare companies seeking to go public this year, and Cadrenal Therapeutics, Inc. is one of them.

Cadrenal is developing a novel therapy for the prevention of cardiac-related blood clots, especially in patients with advanced renal disease and atrial fibrillation. Currently, the company’s lead product is in the development stage. Before hitting the market, it needs to go through various stages like clinical trials and FDA approval. So, it would be a long time before the company generates profits and creates meaningful shareholder value.

To Raise $7Mln

As part of its efforts to expedite the drug development process, the company is all set to raise capital from the public market. As per a revised SEC filing, Cadrenal plans to offer 1.4 million shares in an initial public offering that is tentatively scheduled to be held later this month. Earlier, it had revealed plans to offer around 2 million shares. The estimated offering price is $5 per share, which will yield total proceeds of about $7 million.

Proceeds

Funds raised through the offering will be used mainly for research & development as well as for meeting expenses related to the preparation of clinical trials. A part of the proceeds will be used for working capital and general corporate purposes, including the acquisition or licensing of other products, businesses, or technologies.

Once approved by the Securities and Exchange Commission, the stock will list on the Nasdaq Capital Market under the symbol CVKD. Boustead Securities and Sutter Securities will act as book-runners for the offering.

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Therapies that are currently available for atrial fibrillation and end-stage renal disease have side effects, which is an area Cadrenal looks to capitalize on. The company looks to hold phase-III trial on its lead candidate tecarfarin — which is considered more effective and safer than the existing treatments — in the fourth quarter of 2023.

Financial Performance

Like most early-stage biopharma companies, Cadrenal has not generated revenues yet as it does not have any marketable products. In the eight months that ended in September 2022, since its inception, the company incurred a net loss of about $1.7 million or $0.22 per share, mainly reflecting the general & administrative and research & development expenses.