Azitra and Alumni Capital Ink $20M Share Purchase Agreement to Support Clinical Pipeline

Azitra, Inc., a company at the forefront of developing cutting-edge therapies for precision dermatology, has recently announced a strategic share purchase agreement with the institutional investor Alumni Capital LP. This collaboration aims to offer Azitra a flexible funding mechanism, which is instrumental in advancing their pipeline of live biotherapeutic products designed for treating rare and severe skin conditions.

The agreement is structured to empower Azitra to efficiently navigate financial strategies, thereby minimizing shareholder dilution and enhancing shareholder value. This financial arrangement is pivotal as the company works towards the development of treatments for conditions like Netherton Syndrome and EGFR inhibitor-associated rash, which collectively affect a significant number of individuals in the United States.

Under this agreement, Azitra has the authority to sell up to $20 million in common stock and warrants to Alumni over a 20-month period. The pricing of these transactions will be determined based on the market price at the time of each sale. Importantly, Azitra retains full control over the timing and volume of these sales, which are contingent upon specific stipulations laid out in the agreement.

A noteworthy aspect of this arrangement is that the shares will be issued under exemptions from federal and state securities law registration requirements. However, Azitra is required to register Alumni's resale of the acquired shares, and the execution of warrants will necessitate shareholder approval.

Azitra is particularly focused on their ATR-12 program, an innovative treatment leveraging a specially engineered strain of S. epidermidis, aimed at tackling Netherton syndrome—a severe and chronic skin condition with no existing approved treatments. This program includes a Phase 1b clinical trial, specifically targeting adult patients suffering from Netherton syndrome.

In addition to ATR-12, Azitra is advancing ATR-04, another program utilizing a different engineered strain of S. epidermidis, designed to address rashes associated with EGFR inhibitors. The company has received Fast Track designation from the FDA for this promising treatment, which could potentially help approximately 150,000 affected individuals in the U.S. An open IND supports the ATR-04 program, allowing for further clinical exploration.

These programs are underpinned by Azitra's proprietary technological platform that employs engineered proteins and live biotherapeutic products. This platform boasts a comprehensive microbial library, consisting of around 1,500 bacterial strains. Augmented by artificial intelligence and machine learning, the platform is capable of analyzing and predicting drug-like molecules, facilitating the efficient screening of the microbial library.

Azitra's strategic direction and innovative approach in leveraging the share purchase agreement with Alumni Capital LP underscore its commitment to developing effective treatments for challenging dermatological conditions. By securing a flexible funding source, Azitra is poised to make significant strides in its clinical development efforts, ultimately aiming to deliver much-needed therapeutic options to patients with rare skin disorders.