Akebia Plans to Raise Capital in Most Recent Proposed Offering

Akebia Therapeutics Inc. (NASDAQ: AKBA) plans on raising capital, according to its most recent proposed public offering. The company announced that it intends to offer and sell $75 million of its shares in an underwritten public offering. There is also an overallotment option for an additional $11.25 million.

The underwriters for the offering are Morgan Stanley, UBS Investment Bank, JMP Securities, Needham and Brean Capital.

This biopharmaceutical company headquartered in Cambridge, Mass., is focused on delivering innovative therapies to patients with kidney disease through HIF biology. The company has completed Phase 2 development of its lead product candidate, vadadustat, an oral therapy for the treatment of anemia related to chronic kidney disease in both non-dialysis and dialysis patients.
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According to the Akebia:

The company intends to use the net proceeds from the offering for the continued clinical development of vadadustat in patients with anemia secondary to CKD, including to prepare, initiate and conduct its PRO2TECT Phase 3 clinical trial and to prepare and initiate its planned INNO2VATE Phase 3 clinical trial. In addition, net proceeds are intended to be used to advance its product candidate, AKB-6899, through Phase 1 development in oncology, and the remainder for working capital and other general corporate purposes.

Shares of Akebia traded down 10.8% at $11.20 on Tuesday, with a consensus analyst price target of $21.00 and a 52-week trading range of $5.91 to $14.20.