RXDX Prices Offering At $17.50/Share

(RTTNews) - Ignyta Inc. (RXDX) has priced an underwritten public offering of about 4.29 million shares of its common stock at $17.50 each. The underwriters have a 30-day option to purchase up to an additional 642,857 shares of common stock in connection with the offering.

The offering, which is expected to rake in gross proceeds of approximately $75.0 million, is scheduled to close on or about June 16, 2015, subject to customary closing conditions. At March 31, 2015, the company had cash of roughly $107.6 million.

Ignyta anticipates using the net proceeds from the offering to fund research and development activities for its development programs and for working capital and general corporate purposes.

The company's lead product candidate is Entrectinib, which is currently in two phase I/II clinical trials, dubbed STARTRK-1 trial and ALKA-372-001 trial.

Both the trials are designed to determine the maximum tolerated dose (MTD) and/or recommended phase II dose, as well as preliminary anti-cancer activity, of single agent Entrectinib in patients with solid tumors with the relevant molecular alterations - NTRK1 (encoding TrkA), ROS1 or ALK for ALKA-372-001, and NTRK1/2/3 (encoding TrkA/TrkB/TrkC), ROS1 or ALK for STARTRK-1.

Data were presented from the two phase I clinical trials of Entrectinib - ALKA-372-001 study and the STARTRK-1 study - early this month, and it revelaed that the compound has been well tolerated to date with preliminary but promising signs of antitumor activity.

In March of this year, Ignyta acquired four targeted oncology development programs from Teva Pharmaceutical Industries Ltd. (TEVA).

RXDX closed Wednesday's trading at $18.42, up 1.88%.