Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH) announced the pricing of a $4.5 million public offering on October 29, 2024. The offering, priced at-the-market under Nasdaq rules, includes up to 2,950,820 shares of common stock (or pre-funded warrants) and warrants to purchase shares of common stock at a combined price of $1.525 per share and accompanying warrant. This financial move aims to bolster the company's efforts in advancing its pipeline, particularly the clinical development of Ropidoxuridine, a radiation sensitizer. The offering is expected to close around October 31, 2024, pending customary closing conditions.
Funding Allocation for Clinical Advancement
The net proceeds from this offering are earmarked for critical clinical development activities. A significant portion, $2.3 million, is designated for payments to Theradex Systems, Inc., a clinical research organization (CRO) supporting Shuttle Pharma’s Phase II clinical trials for Ropidoxuridine. The remaining funds will be allocated to IND-enabling studies, Phase I and II clinical trials of other product candidates, and for general corporate purposes.
Ropidoxuridine: Enhancing Radiation Therapy
Ropidoxuridine is Shuttle Pharma's lead drug candidate, designed to improve the effectiveness of radiation therapy (RT) in cancer treatment. By acting as a radiation sensitizer, Ropidoxuridine aims to increase cancer cure rates, prolong patient survival, and improve the quality of life for patients undergoing RT, either as a primary treatment or in combination with other modalities like surgery, chemotherapy, and immunotherapy.
Offering Details and Potential Impact
The public offering includes warrants exercisable at $1.40 per share, which will expire five years from the issuance date. A.G.P./Alliance Global Partners is serving as the lead placement agent for the offering, with Boustead Securities, LLC acting as a co-placement agent.
This offering represents a notable financial event for Shuttle Pharmaceuticals, potentially impacting its capital structure. While the funding is crucial for advancing clinical trials, the at-market pricing and inclusion of warrants suggest challenging market conditions. The offering may also lead to dilution of existing shareholders' equity.
About Shuttle Pharmaceuticals
Shuttle Pharmaceuticals Holdings, Inc., founded in 2012 by faculty members of the Georgetown University Medical Center, is focused on developing therapies to improve outcomes for cancer patients treated with radiation therapy. The company's mission is to maximize the effectiveness of RT while minimizing side effects, ultimately aiming to enhance cancer cure rates and patient quality of life.
