Surface Ophthalmics announced it has secured gross proceeds of approximately $25 million in a private placement of preferred stock, at a purchase price of $4.50 per share. Investors in this round of financing included both new and existing investors made up of institutional, healthcare-focused, and other accredited investors, including members of the Surface Board of Directors.
The proceeds from this round of capital raising will be used to complete the ongoing phase 2 clinical trial of SURF-100, a head-to-head study comparing SURF-100 against leading on-market competitors lifitegrast ophthalmic solution 5% and cyclosporine ophthalmic emulsion 0.05% along with the phase 2 clinical trial of SURF-200, being studied as a potential treatment for acute dry eye disease. Both studies are expected to deliver readouts in the first quarter of 2022. Additionally, Surface is preparing a head-to-head phase 3 program for its SURF-201 drug candidate against difluprednate ophthalmic emulsion 0.05% following previously announced outstanding phase II results. Surface also intends to expand its leadership team and operations to support ongoing ocular surface disease clinical programs that are expected to start in 2022.
Following the completion of current phase 2 studies, the company will be positioned to begin enrolling patients in phase 3 clinical trials, targeting FDA approval, for all three of its ophthalmic product candidates: SURF-100, SURF-200 and SURF-201.
“We’re excited by this new capital which will allow us to continue our development programs for truly innovative therapies in the eye care space utilizing our three core building blocks, Klarity, betamethasone and mycophenolate sodium, to support a healthy ocular surface and a positive experience for dry eye and post-ocular surgery patients,” Kamran Hosseini, MD, PhD, President and CEO, Surface Ophthalmics, said in a company news release. “We believe that this strong fundraising round demonstrates the confidence and excitement, from both our existing investor base and new investors, in our model and clinical programs.”
Newbridge Securities Corporation is acting as the exclusive placement agent for the financing. Black River Wealth Management at Newbridge was primarily responsible for sourcing and executing the financing.