Grace Therapeutics obtains $15m for GTx-104 pre-commercial development

Grace Therapeutics has successfully completed the initial phase of its latest financing initiative, amassing nearly $15 million to advance the pre-commercial stages of GTx-104's development. The total funding goal for this initiative is set at $30 million in gross proceeds. This financial boost is spearheaded by Nantahala Capital and ADAR1 Partners, with additional support from both new and existing institutional investors with a focus on healthcare, including Stonepine Capital Management.

The company has established securities purchase agreements with these investors. This arrangement involves the release of 4.4 million shares in common stock or pre-funded warrants, along with common warrants that allow for the purchase of more shares. The common warrants, which are set at an exercise price of $3.395 per share, will be activated immediately and are slated to expire either 60 days after the US Food and Drug Administration (FDA) approves the new drug application (NDA) for GTx-104 or on September 25, 2028, whichever comes first. Should these warrants be fully exercised, Grace Therapeutics stands to gain an additional $15 million. The proceeds from this fundraising will also be utilized for general corporate purposes.

The focus of this development effort is an injectable form of nimodipine, which is undergoing clinical trials. This formulation is designed for intravenous use in patients suffering from aneurysmal subarachnoid haemorrhage (aSAH), a type of stroke resulting from the rupture of a brain aneurysm. aSAH accounts for approximately 5% of all stroke cases. The company is being advised by TD Cowen, who is serving as the placement agent for this private placement, while Craig-Hallum is acting as a financial advisor.

Previously identified as Acasti Pharma, Grace Therapeutics has shifted its focus towards creating treatments for rare and orphan diseases. In February 2025, the company shared promising results from its Phase III STRIVE-ON safety clinical trial for GTx-104, which achieved its primary endpoint. This trial provided evidence of clinical benefits over the existing orally administered nimodipine.

With these developments, Grace Therapeutics is poised to make significant strides in the arena of rare disease treatment, bringing new hope to patients suffering from conditions like aSAH. The financial backing secured through this round of funding will be instrumental in driving the company’s initiatives forward, ultimately aiming for regulatory approval and market entry.