Thursday, August 17, 2023
Eledon Pharmaceuticals, Inc. (NASDAQ: ELDN) has made a significant announcement regarding its Phase 1b trial for tegoprubart, a drug aimed at patients undergoing kidney transplantation. The company has successfully dosed its 10th patient in this trial, marking a substantial step forward. Eledon plans to share preliminary clinical findings from the ongoing study at the American Society of Nephrology (ASN) Kidney Week Annual Meeting scheduled for November 2023.
Dr. David-Alexandre C. Gros, the CEO of Eledon, expressed satisfaction with the swift pace of patient recruitment in the Phase 1b trial. He underscored the potential demand for an improved immunosuppressive treatment for the significant number of individuals who undergo kidney transplantation annually. The successful dosing of the 10th patient signifies a notable milestone, highlighting the fulfillment of a crucial clinical objective tied to the recent financing agreement. This accomplishment also positions the company favorably to conclude the second round of funding upon achieving another milestone: the dosing of the 12th patient in the ongoing Phase 2 BESTOW study. The company is actively initiating sites for the BESTOW study and is eagerly anticipating the commencement of patient recruitment.
In May 2023, Eledon Pharmaceuticals finalized a definitive securities purchase agreement with specific healthcare investors. This agreement, executed through a private placement, offers the potential to secure up to $185 million in total proceeds. The initial funding amounted to $35 million, with the possibility of additional financing totaling $105 million distributed across two tranches. The realization of these financial increments hinges on meeting clinical development milestones, adhering to volume-weighted share price levels, fulfilling trading volume conditions, and could potentially be supplemented by up to $45 million upon the exercise of warrants.
With the successful dosing of the 10th patient, Eledon Pharmaceuticals has achieved a primary clinical development milestone pertinent to the second tranche of funding. The subsequent milestone pertains to the dosing of the 12th patient in the Phase 2 BESTOW study, projected to initiate patient recruitment in the third quarter of this year.