Corvus Pharmaceuticals Plans $150 Million Stock and Warrant Offering with $22.5M Option
Corvus Pharmaceuticals launched an underwritten public offering of $150 million of common stock and pre-funded warrants, plus a 30-day option for up to $22.5 million additional. Net proceeds will fund working capital and R&D for its Phase 3 T-cell lymphoma and Phase 2 atopic dermatitis, hidradenitis suppurativa and asthma trials.
1. Positive Phase 1 Cohort 4 Readout for Soquelitinib in Atopic Dermatitis
Corvus Pharmaceuticals reported that in Cohort 4 of its Phase 1 trial of soquelitinib in patients with moderate-to-severe atopic dermatitis, 85% of evaluable subjects achieved at least a 50% reduction in Eczema Area and Severity Index (EASI-50) by Week 4, with 60% reaching EASI-75. Median time to first clinical response was 15 days. The oral ITK inhibitor was generally well tolerated, with no dose-limiting toxicities and a safety profile consistent with earlier cohorts. Pharmacodynamic assessments showed sustained inhibition of Th2 and Th17 cytokine signaling in skin biopsy samples, supporting the molecule’s mechanism of action and informing dose selection for the planned Phase 2 study.
2. $150 Million Underwritten Public Offering to Fund Late-Stage Trials
The company has initiated an underwritten public offering of $150 million of common stock and, for certain investors, pre-funded warrants to purchase common shares. Corvus expects to grant underwriters a 30-day option to acquire up to an additional $22.5 million of common stock at the public offering price less underwriting discounts and commissions. Proceeds will be used for working capital, general corporate purposes, capital expenditures and R&D, including a planned registrational Phase 3 trial in T-cell lymphoma and Phase 2 studies in atopic dermatitis, hidradenitis suppurativa and asthma. Jefferies and Goldman Sachs & Co. LLC are lead book-running managers, with Mizuho as bookrunner and Ladenburg Thalmann as co-manager. The offering is subject to customary closing conditions.
3. Analyst Upgrade and Market Response to Eczema Data
Following the Cohort 4 results, H.C. Wainwright increased its price target for Corvus by approximately 48%, highlighting the potential for soquelitinib to address a multi-billion-dollar atopic dermatitis market. The company’s market capitalization now stands at roughly $1.36 billion, and daily trading volume recently peaked near 55 million shares. Investors have reacted favorably to the combination of clinical proof-of-concept data and strengthened financial runway, positioning Corvus as a standout small-cap biotech to watch in immunodermatology and oncology.