The stock price of ContraFect Corp. rallied on Thursday, March 11, 2021, gaining 25% in value in the normal trading session and increased 37.17% more in the after-hours session. Here is the reason why?
Earlier in the day, ContraFect announced that the company has won a cost-share contract from the Biomedical Advanced Research and Development Authority (BARDA). According to the contract, ContraFect will receive $9.8 million in initial funding up to an additional $77.0 million. The financial funding will be used to support ContraFect’s ongoing pivotal Phase 3 DISRUPT (Direct Lysis of Staph aureusResistant Pathogen Trial) superiority study of exebacase in patients with Staph aureus bacteremia, including right-sided endocarditis. ContraFect would be able to get more funding if the trial is successful in achieving key milestones to continue the advancement of exobases through FDA product approval.
The President, Chief Executive Officer, and Chairman of ContraFect. Roger J. Pomerantz, M.D. welcomed the funding and said that they are grateful for the BARDA’s support to fund the advancement of exebacase toward the completion of their ongoing Phase 3 study and potential product approval.
BARDA Director Gary Disbrow, PhD said that they need to work together to develop effective medical countermeasures against Antibiotic-resistant infections.
The new member of the board
On February 11, 2021, ContraFect announced the appointment of Jane F. Barlow, MD, MPH, MBA to the Company’s board of directors (Board). Dr Barlow has extensive experience in steering pharmaceutical development by strategically weighing the value and economic costs that drug candidates bring to the healthcare ecosystem at large.
3Q 2020 Financial results highlights
The ContraFectannounced its financial results on November 13, 2020, for the quarter ended September 30, 2020. It spent 44.7 million in Research and development expenses for the reported quarter. For the third quarter of 2020, General and administrative expenses were $2.6 million. The Company’s net income was $0.12 per share or $3.4 million. It reported a net loss of $5.4 million or $0.19 per diluted share. ContraFect had cash, cash equivalents, and marketable securities of $50.2 million, by the end of September 30, 2020.