Scynexis (NASDAQ:SCYX) shares rose 13.9% in pre-market trading after the company announced a contract with the U.S. Biomedical Advanced Research and Development Authority to support development of its SCY-247 antifungal candidate.
The BARDA contract provides potential funding of up to approximately $214 million if all options are exercised and could extend for as long as 10 years.
The initial base period provides approximately $18.5 million to support development of oral and intravenous formulations of SCY-247 and their advancement into a Phase 2 clinical trial involving patients with invasive candidiasis.
BARDA Funding Could Support Development Through NDA Submission
SCY-247 is Scynexis’ second-generation fungerp antifungal candidate.
Under the cost-sharing arrangement, BARDA will cover eligible development expenses for SCY-247, including direct costs and general and administrative expenses.
If all contract options are exercised, the funding could support development through submission of a new drug application for the treatment of invasive candidiasis and the prevention of invasive fungal infections in high-risk patients.
The government funding does not involve the issuance of new Scynexis shares under the terms described in the source material.
Chief Executive David Angulo, M.D., said the partnership addresses “the growing threat of antimicrobial resistance”.
Scynexis Continues Development of SCY-770
Alongside the SCY-247 program, Scynexis remains focused on SCY-770, its lead rare disease candidate for autosomal dominant polycystic kidney disease.
The BARDA agreement specifically provides development funding for the company’s SCY-247 antifungal program.
Scynexis Advances as Broader Market Declines
Scynexis shares moved higher in pre-market trading while major U.S. equity indexes declined. The S&P 500 fell 0.5%, the Dow Jones declined 0.6% and the Nasdaq was down 0.8%.
Scynexis shares have traded between $3.53 and $9.12 over the past 52 weeks.
The company’s pre-market gain followed the announcement of the initial $18.5 million BARDA funding commitment and the potential for total funding of approximately $214 million if all contract options are exercised.