Ayala Pharmaceuticals Raises $25M Via Equity To Fund AL102 Development In Connective Tissue Tumors

Ayala Pharmaceuticals Inc (NASDAQ: AYLA) will raise $25 million via a private placement of around 1.7 million units at $15 per unit from institutional investors, including Redmile Group and SIO Capital Management. Each unit consists of one Ayala share and a warrant to purchase 0.35 shares at an exercise price of $18.10.
The placement is expected to close by February 23, and Ayala notes that the additional funding will extend its cash runway into 2023.
The funds will support the development of AL102 into a pivotal Phase 2/3 study for desmoid tumors (aggressive fibromatosis or desmoid-type fibromatosis). It is a rare connective tissue tumor typically in the upper and lower extremities, abdominal wall, head and neck area, mesenteric root, and chest wall.
The Phase 2/3 RINGSIDE study in adult and adolescent patients with desmoid tumors will start in the first half of 2021, with an initial interim data read-out from part 1 and dose selection expected by mid-2022.
AL102 is an oral gamma-secretase inhibitor currently being developed for desmoid tumors and in combination with Novartis' B-cell maturation antigen (BCMA)-targeting agents for the treatment of multiple myeloma.
Jefferies LLC is acting as the exclusive placement agent for the private placement.
Price Action: AYLA gained 5.03% at $19.01 in market trading hours on last check Friday.