CASI Pharmaceuticals, Inc. (NASDAQ: CASI) had an uneventful trading session on Wednesday, with the stock dipping slightly by 1.2%. However, after the close of regular trading hours, the stock saw a significant after-hours surge, climbing by as much as 65%. The volume was about three times higher than the average, indicating strong buying interest among investors.
Table of Contents
Toggle- Positive CASI Updates
- Strategic CASI Investments and Insider Activity
- Conclusion
Positive CASI Updates
The dramatic after-hours movement coincides with a series of positive updates from the company. CASI Pharmaceuticals, a biopharmaceutical company focused on developing and commercializing innovative therapeutics in China, the United States, and globally, announced plans to submit an Investigational New Drug (IND) application to the U.S. FDA for CID-103 by the end of 2024.
CID-103 is an anti-CD38 monoclonal antibody showing promising preclinical efficacy and safety for treating antibody-mediated rejection in kidney transplant recipients. The company believes it has sufficient capital to complete Phase II clinical trials for AMR, thanks to recent private placement financing and existing cash reserves.
Strategic CASI Investments and Insider Activity
CASI also entered into securities purchase agreements for a private investment in public equity (PIPE) financing, expected to raise approximately $15 million. The PIPE transaction is led by Venrock Healthcare Capital Partners and Foresite Capital, with participation from Panacea Venture and Dr. Wei-Wu He, the company's CEO, and his family trust.
The company is selling 1,020,000 ordinary shares at $5.00 per share and pre-funded warrants for an additional 1,980,000 shares, set at a minimal exercise price. The PIPE transaction is expected to close in mid-July 2024.
CASI Pharmaceuticals, with insiders owning 52% of the company, has seen high insider buying activity lately. The stock's small float and limited available shares for borrowing have contributed to its volatility, further boosted by positive FDA-related news.
Conclusion
Wednesday's after-hours surge in CASI Pharmaceuticals' stock reflects strong market confidence following a series of strategic announcements and positive updates. As the company progresses with its plans, investors will be closely watching the developments, particularly the IND submission for CID-103 and the potential acquisition of its Chinese operations.