By Josh Beckerman
Shares of GRI Bio surged after the company reported favorable interim safety results for a pulmonary fibrosis treatment but dropped significantly after an equity offering was announced later.
The stock was recently at $2.09, down 67%, in midday Tuesday trading, after climbing to as high as $11.12 and falling to a new 52-week low of $2.01. Volume was more than 11 million shares, compared with a 90-day average of 18,000.
GRI Bio is developing Natural Killer T cell modulators for treatment of inflammatory, fibrotic and autoimmune diseases. It reported the results from its continuing Phase 2a study demonstrating GRI-0621 to be safe and well-tolerated in the first 12 patients evaluated per protocol.
The La Jolla, Calif., company expects to report interim biomarker data in the second quarter.
GRI Bio's offering, disclosed later Tuesday, includes 1.39 million shares, or stock equivalents in lieu thereof, along with Series E-1, E-2 and E-3 warrants, with a price of $3.60 a share and accompanying warrants.
In March 2022, the Nasdaq-listed company then known as Vallon Pharmaceuticals reported unfavorable results for its lead drug candidate, ADAIR, an abuse-deterrent formulation of amphetamine for attention deficit hyperactivity disorder and narcolepsy. In April 2023, Vallon merged with the privately held GRI Bio Inc., with the combined company operating as GRI Bio.
GRI completed a 1-for-17 reverse stock split in February. On March 17, the company said it believes existing cash and cash equivalents would be sufficient to fund its operating expenses and capital expenditure requirements into the second quarter.
Shares are down about 84% this year.
Write to josh.beckerman@wsj.com
(END) Dow Jones Newswires
April 01, 2025 14:04 ET (18:04 GMT)
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