Ardelyx agrees to raise $110m in private placement

The company focused on the discovery, development and commercialization of new minimally-systemic, small molecule therapeutics that work exclusively in the gastrointestinal (GI) tract to treat GI and cardio-renal diseases.

Ardelyx has entered into an agreement to sell 12.6 million shares of common stock for aggregate gross proceeds of about $110m.

Investors in the private placement include new and existing investors, including New Enterprise Associates (NEA), Australia's Future Fund, Quadrille Capital, EcoR1 Capital, RA Capital Management, First Manhattan Co.

Rock Springs Capital, Cormorant Asset Management, Perceptive Advisors, Deerfield and DAFNA Capital Management are also partiicpating in the private placement.

Ardelyx will use the proceeds for phase 3 development of tenapanor for two indications, IBS-C and hyperphosphatemia, as well as development of RDX227675 to treat hyperkalemia.

Ardelyx president and CEO Mike Raab said: "We are extremely pleased to receive such tremendous support from this impressive syndicate of biotech investors who recognize the vision we have for Ardelyx.”

The additional capital will allow the company to execute several milestones between now and the end of 2017.

Ardelyx plans to complete the first registration trial for tenapanor to treat hyperphosphatemia in ESRD patients on dialysis and start the second registration clinical trial.

Plans also include completion of T3MPO-1 and T3MPO-2 tenapanor Phase 3 clinical trials to treat irritable bowel syndrome with constipation.