Inhibikase Therapeutics, Inc. (NASDAQ: IKT) experienced a significant uptick in its stock price on Tuesday, following the announcement of a successful financing deal and the advancement of its clinical trials. As of the latest after-market check, IKT shares rose by 12.32%, reaching $2.37 after a regular session decline of 4.95%, which concluded at $2.11.
Successful Financing Round
Inhibikase Therapeutics (IKT) secured approximately $110 million through a private placement involving the issuance and sale of common stock and accompanying warrants. Notably, this financing arrangement has the potential to generate up to $275 million through full cash exercise of the warrants issued.
The funding will be used for general business projects as well as the Phase 2b “702” experiment, which is aimed at pulmonary arterial hypertension (PAH). This funding demonstrates Inhibikase’s unwavering dedication to developing treatments for neurodegenerative and cardiovascular disorders.
Positive Advances in Drug Treatment
At the core of Inhibikase’s strategy is IkT-001Pro, a formulation of imatinib that previously demonstrated significant clinical benefits in enhancing heart health as a daily oral therapy. However, imatinib’s prior safety and tolerability issues had hindered its approval.
Inhibikase is optimistic that IkT-001Pro will address these concerns, presenting a potentially safer and better-tolerated alternative for PAH patients. Preclinical studies indicate that IkT-001Pro could be up to 3.4 times safer compared to imatinib in non-human primates, significantly reducing gastrointestinal and other adverse side effects associated with oral administration.
Leadership Expansion and Future Outlook
In conjunction with the financing closure, Inhibikase Therapeutics has announced the appointment of three distinguished leaders in biopharmaceutical development, along with a Partner from Soleus Capital who possesses extensive experience in the financing of cardiopulmonary therapeutic advancements, to its Board of Directors.
This strategic move is expected to enhance the company’s governance and strategic direction as it advances its innovative medicinal chemistry program, which has yielded promising products such as IkT-001Pro for patients suffering from PAH.
As Inhibikase continues to forge ahead, the support from top-tier healthcare investment funds further reinforces the potential of its therapeutic innovations to transform patient care in critical disease areas.
