Mirati Therapeutics Inc. (MRTX) plans to raise $65 million through a public offering of 4.35 million common shares at $5.60 per share.

In addition, and in lieu of common stock, the San Diego-based company is offering to funds affiliated with Boxer Capital LLC pre-funded warrants to purchase up to an aggregate of 7.26 million common shares at $5.599 per warrant, which represents the per-share public offering price for the common stock less the $0.001 per share exercise price for each such pre-funded warrant.

Leerink Partners is appointed as the sole book-running manager for the issue. Underwriters have been granted a 30-day option to buy an additional 652,526 shares. The issue is expected to close on January 11, 2017.

To Fund 3 Lung Cancer Drug Studies

Mirati Therapeutics expects to use the money it raises to fund clinical trials of its three lung-cancer drugs (glesatinib, sitravatinib and mocetinosta) and other general corporate purposes.

Mirati is a clinical-stage biopharmaceutical company that develops oncology products to treat genetic and epigenetic drivers of cancer in selected subsets of cancer patients with unmet medical needs. The company has three lead candidates, glesatinib, sitravatinib and mocetinostat, for treating non-small cell lung cancer (NSCLC) and other solid tumors.

There are two types of lung cancer: small cell lung cancer (SCLC) and non-small cell lung cancer (NSCLC). NSCLC is the most common type of lung cancer in which cancer cells form in the tissues of the lung. It usually grows and spreads more slowly than SCLC. (See also: Novartis Lung Cancer Drug Succeeds in Trial.)

Glesatinib is in Phase 2 clinical stage, Sitravatinib is in Phase 1b, and Mocetinostat is in a Phase 1b/2 clinical study as a combination therapy with durvalumab. (See also: 8 Stages Of New Drug Development.)

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