UroGen Pharma Set to Secure $120M Following Successful Bladder Cancer Trial

UroGen Pharma, a trailblazer in uro-oncological therapies, recently unveiled encouraging results from two clinical trials of its bladder cancer treatment, UGN-102. This innovative product targets a market of approximately 80,000 patients, significantly larger than the market for the company’s debut product, Jelmyto, which is designed for upper tract urothelial cancer and caters to a few thousand patients.

In the wake of the positive clinical trial results, UroGen announced plans to raise $120 million through a private placement. The funding round, led by Ra Capital and Green Point Ventures, also saw participation from Acorn Bioventures, Monograph Capital, and Horton Capital Partners Fund, LP.

The offering was set at a 5% premium above the market price prior to the results’ publication. Subsequent to these announcements, UroGen’s stock surged by 26%, pushing the company’s market value to $530 million at Friday’s market close.

A Unique Trajectory in Biotech

Unlike its peers in the biotech sector listed on Nasdaq, UroGen’s stock did not reach its zenith in 2021, only to decline later. Instead, the company’s stock hit its most recent high in 2018, following positive results from Jelmyto, which led to the product’s approval in 2020. However, given Jelmyto’s relatively niche market and revenues amounting to just tens of millions of dollars, it failed to sustain investor interest. UroGen had initially positioned Jelmyto as a “proof of concept product,” with UGN-102 slated to be the company’s first major product. The market now appears to be aligning with this vision.

A Proven Leader at the Helm

UroGen’s chairman, Prof. Arie Belldegrun, a seasoned biotech entrepreneur, has a track record of selling companies worth billions of dollars. His most notable deal was the sale of Kite Pharma to Gilead for a staggering $11.9 billion. Following the recent announcements, Belldegrun, a professor of uro-oncology, confidently told “Globes,” “I told you that this company would change medical practice in the field, and now the results show that I was right.”

A Potential Game-Changer in Bladder Cancer Treatment

UroGen’s CEO, Liz Barrett, explained to “Globes” that their product is designed for patients with low-grade intermediate-risk bladder cancer, which is currently treated with surgery. However, the more severe the patient’s condition, the higher the likelihood of cancer recurrence. Over half of the patients experience two or more recurrences, while about 25% suffer from five or more recurrences. This treatment could be particularly beneficial for older patients who may not be able to undergo multiple surgeries, even if they are minimally invasive.

Barrett further elaborated on the potential of UGN-102, stating, “UGN-102 has demonstrated a robust and consistent therapeutic profile across multiple clinical trials, providing a compelling picture of its potential to be a transformational product and advance the standard of care away from repetitive surgery to a minimally invasive, non-surgical option.” She anticipates that, if approved, UGN-102 could be a significant growth driver for UroGen, being the first-ever non-surgical treatment option for a disease affecting approximately 82,000 new patients in the U.S. each year.

Founded in 2004, UroGen is headquartered in Princeton, New Jersey, and maintains operations in Israel.

TL;DR

UroGen Pharma, a company specializing in uro-oncological treatments, recently reported positive results from two clinical trials of its bladder cancer treatment, UGN-102. Following this, the company announced plans to raise $120 million in a private placement. The company’s stock price surged by 26% after these announcements. UroGen’s chairman, Prof. Arie Belldegrun, and CEO, Liz Barrett, expressed confidence in the potential of UGN-102 to transform the standard of care for bladder cancer from repetitive surgery to a minimally invasive, non-surgical option.