Why Unicycive Therapeutics Stock Is Exploding Higher Monday

Unicycive Therapeutics Inc UNCY shares are exploding higher Monday after the company announced a private placement of up to $130 million in gross proceeds to commercialize and launch Renazorb, a phosphate binder that potently controls phosphate with just three small tablets per day. 

What Happened: Unicycive signed a securities purchase agreement with institutional investors that will provide up to $130 million in gross proceeds to the company through a private placement that includes initial upfront funding of $30 million.

In connection with the financing, Gaurav Aggarwal, managing director of Vivo Capital, will join the Unicycive Board of Directors. Vivo Capital is leading the funding announced Monday.

"We are delighted to have the financial backing of both existing and new investors from these high profile, healthcare-focused funds as it provides strong validation of the best-in-class potential for Renazorb^® and provides funding for its potential commercial launch, if approved," said Shalabh Gupta, CEO of Unicycive.

"We remain on track to file a New Drug Application (NDA) for Renazorb marketing approval with the U.S. Food and Drug Administration (FDA) in mid-year."

Unicycive is a clinical-stage biotechnology company developing therapies for patients with kidney disease.

UNCY Price Action: Unicycive shares are nearing new 52-week highs after more than tripling in early trading.

The stock was up 220.6% at $1.57 at time of publication, according to Benzinga Pro.

Photo: Miguel Á. Padriñán from Pixabay.