Drug development company DARA BioSciences is updating its plans to raise up to $30 million through a stock sale.
Raleigh, North Carolina-based DARA (NASDAQ:DARA) has filed a new shelf registration statement with the U.S. Securities and Exchange Commission, which replaces a filing set to expire on April 18. DARA said it has no plans to issue securities to raise money right now, but the shelf filing gives it the flexibility to do so at some future date if needed. DARA last raised money in December through a $4.8 million offering of preferred stock and warrants. The company said it has enough cash to complete key clinical milestones this year.
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DARA has no U.S. Food and Drug Administration-approved drugs. The company’s lead drug candidate is KRN5500, which is being studied as a treatment for neuropathic pain. The compound has successfully completed a phase 2 clinical trial and DARA plans to start a second phase 2 study in the second quarter in conjunction with the National Cancer Institute. This second study will focus on treating chemotherapy-induced peripheral neuropathy, or CIPN, a condition characterized by numbness, burning or shooting pain in the arms or legs. The National Cancer Institute says an estimated 30 percent to 40 percent of cancer patients treated with chemotherapy experience CIPN.
DARA aims to develop a CIPN treatment with fewer side effects than existing products. In DARA’s annual report, the company said it has started discussions about licensing KRN5500 and companies are currently doing their due diligence on the compound. DARA’s pipeline also includes type 2 diabetes drug candidate DB959, which is in phase 1 clinical trials.
