Coya Therapeutics, Inc. (NASDAQ: COYA) shares sustained their upward momentum during the after-market session on Wednesday. The stock witnessed a notable surge of 6.53%, reaching $7.99 in after-hours trading, building on a 4.90% gain during the regular session, concluding at $7.50. The persistent ascent in COYA stock is attributed to recent developments propelling its market value.
In a strategic move last week, Coya Therapeutics appointed Secretary Wilbur Ross to its board of directors with immediate effect. This decision reflects Coya’s strategic intent to capitalize on Secretary Ross’s wealth of experience in both the corporate and investment spheres. His involvement is anticipated to provide valuable insights into guiding strategic partnerships, capital market initiatives, and drug development programs.
This addition to the board coincided with the completion of a private placement conducted at-the-market. The company offered and sold 4,370,382 shares of its common stock at $6.06 per share, yielding total earnings of $26.5 million, and an anticipated net sum of about $24.1 million. The planned utilization of these funds includes general corporate needs and regulatory endeavors linked to the enterprise’s ongoing and upcoming product candidate lineup.
Furthermore, COYA recently entered into a noteworthy development and license agreement with Dr. Reddy’s Laboratories. This collaboration focuses on COYA 302, an investigational combination therapy for Amyotrophic Lateral Sclerosis (ALS) treatment. Dr. Reddy’s has secured exclusive rights for the commercialization of COYA 302 in the United States, Canada, the European Union, and the United Kingdom, specifically for treating ALS. This agreement adds to a prior in-licensing deal inked with Dr. Reddy’s earlier this year.
As per the terms, Dr. Reddy’s initiated the collaboration with an initial payment of USD 7.5 million to Coya. Furthermore, conditional payments of USD 4.2 million each will follow upon the initial FDA approval of the investigational new drug (IND) application for COYA 302 and the commencement of the first patient’s treatment. Coya foresees submitting the IND application in the first half of 2024.
