May 25 Quick Takes: Verrica shares halved after third FDA setback

For the third time, Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) will need to address a deficiency in its NDA for VP-102 to gain the product’s approval to treat molluscum contagiosum. The biotech said late Tuesday that FDA had issued a third complete response letter for the application, citing the results of a reinspection of a CMO facility belonging to Sterling Pharmaceuticals Services LLC where its product is manufactured. A July 2021 CRL for VP-102 also pertained to the Sterling facility. VP-102 is a topical film forming solution of cantharidin administered through a single-use applicator. Verrica lost $3.55 (64%) to $2.01 Wednesday, with its market cap falling to about $55 million.

Taking advantage of its climbing share price, Chinook Therapeutics Inc. (NASDAQ:KDNY) raised $105 million through the sale of 6.4 million shares at $14 in a follow-on priced ahead of Wednesday’s session, adding to a balance sheet that had $330 million as of March 31. The kidney-focused company’s shares had risen 20% through Tuesday’s close since a May 19 premarket announcement showed proteinuria and other biomarker reductions in a Phase I/II trial of anti-APRIL mAb BION-1301 to treat IgA nephropathy. Chinook priced at a 7% discount to Tuesday’s close of $15.11. Its shares slipped $1.52 (10%) to $13.59 Wednesday. Its market cap stands at about $750 million...