Ambrx, a clinical stage biopharmaceutical company, has announced that it has raised $78 million through its at-the-market (ATM) program. The program, which had an aggregate offering price of up to $80 million in gross proceeds, was established on August 5, 2022, through Cowen and Company LLC, acting as sales agent. The company sold an aggregate of 16,575,826 American Depositary Shares (ADSs) at an average selling price of $4.83 per ADS, resulting in net proceeds of $78 million.
The capital raised from the ATM program is in addition to the company’s preliminary cash position of $101.3 million, as of December 31, 2022. The funds will be used to support the company’s focus on advancing its clinical and preclinical programs, including ARX517 and ARX788, its proprietary antibody-drug conjugates targeting PSMA and HER2, respectively. Ambrx uses an expanded genetic code technology platform to develop next-generation antibody drug conjugates and other engineered therapies to modulate the immune system.
Regarding the Ambrx announcement, it is significant news for the biopharmaceutical industry. The completion of their ATM program with net sales of approximately $78 million is a considerable achievement. The fact that the program reached its maximum capacity of $80 million in gross proceeds indicates strong demand from investors. The use of an at-the-market program is a popular method of raising capital, allowing companies to issue new shares without diluting existing shareholders or disrupting the market.
Ambrx’s focus on ARX788 and ARX517 is also noteworthy. These two proprietary antibody-drug conjugates (ADCs) have shown promising results in clinical trials and are designed to target specific cancer indications. ARX517 targets the prostate-specific membrane antigen (PSMA), which is expressed in prostate cancer cells, while ARX788 targets HER2, which is overexpressed in several types of cancer, including breast cancer. The potential of these therapies to improve efficacy and safety in cancer treatment is significant, and the additional capital raised from the ATM program will provide Ambrx with the resources to continue their development plans into 2025.
The statement from Ambrx’s CEO regarding the closure of Silicon Valley Bank (SVB) is also noteworthy. The recent closure of SVB, which was announced on March 7, 2023, due to a significant financial loss, has caused concern among its clients. Ambrx’s statement that they do not hold cash deposits or securities at SVB is reassuring for investors and demonstrates the company’s cautious approach to managing its funds.
The mention of Ambrx’s expanded genetic code technology platform is also significant. This platform allows for the discovery and development of next-generation ADCs and other engineered therapies to modulate the immune system. The potential of this technology to revolutionize cancer treatment is immense, and Ambrx’s clinical and preclinical programs are at the forefront of this research. The company’s collaborations with multiple partners on drug candidates generated using Ambrx technology further demonstrate its commitment to advancing the field of biopharmaceuticals.
The fact that Ambrx spun out of The Scripps Research Institute in 2003 is also worth noting. The Scripps Research Institute is a leading biomedical research institution, and Ambrx’s ties to it demonstrate the company’s strong foundation in scientific research. The several other product candidates involving ADCs and other aspects of Ambrx’s protein engineering technology also highlight the company’s innovative approach to drug development.