Falcon Pharmaceuticals (NASDAQ: FLCN) announced today the repricing of a previously announced private placement of convertible notes. The notes, which were offered at an initial price of $9,100 per note, will now be offered at $4,500 per note for a total of $5,000,000.
Falcon is a specialty pharmaceutical company focused on the development and commercialization of novel products for the treatment of rare diseases. The proceeds from the private placement will be used primarily to fund ongoing and planned clinical trial programs for its lead product candidate, a novel calcitonin gene-related peptide (CGRP) receptor antagonist.
This repriced private placement is a positive development for Falcon, as it will provide the company with the necessary funds to continue its crucial clinical development efforts. CGRP receptor antagonists are a class of drugs that aim to reduce the severity of migraine headaches by preventing the CGRP protein from binding to its receptors in the brain.
Currently, there are no such drugs approved by the U.S. Food and Drug Administration (FDA). Falcon’s drug candidate could potentially be the first such drug approved, thus offering a major benefit to migraine sufferers worldwide.
The private placement is an attractive investment for investors looking for exposure to the potential success of a promising biotechnology venture. The new pricing suggests that Falcon is confident in the prospects of the drug and the company, which could indicate a more robust future for the stock and for the pipeline.
The investors participating in the repricing of the private placement may have divined something about Falcon’s prospects with this particular drug that other investors have not yet seen. If the drug proves successful in the clinical trials it is currently undergoing, the value of the company could rise significantly, potentially delivering superior returns to the early investors.
The repricing of the private placement is yet another indicator of the potential behind Falcon’s novel drug candidate and the prospects of the company as a whole. With the necessary funding secured and the clinical trials progressing, investors have much to look forward to in the near future when it comes to this healthcare stock.