Quoin Pharmaceuticals (QNRX) stock skyrocketed by about 157% on Friday after announcing a major funding deal that sparked strong investor interest. The specialty pharmaceutical company disclosed a private placement agreement worth up to $104.5 million, backed by a group of healthcare-focused institutional investors.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
The deal includes an initial $16.5 million cash infusion, with the potential for an additional $88 million through warrant exercises.
Importantly, the placement was priced at a premium to Quoin’s closing stock price from the previous day. This signals strong confidence in the company’s pipeline, particularly its lead candidate QRX003, a topical therapy for Netherton Syndrome.
Funding to Accelerate Lead Candidate
Quoin intends to use the initial net proceeds for general corporate purposes, including operating expenses, research and development, and specifically the completion of clinical development for its leading candidate, QRX003.
The company projects that the total potential funding from the deal will be sufficient to support its operations into 2027.
Is QNRX a Good Buy?
Turning to Wall Street, QNRX stock has a Moderate Buy consensus rating based on a single Buy rating assigned by Maxim Group analyst Naz Rahman in the past three months. Rahman’s price target of $70 on Quoin stock implies 247.39% upside potential from current levels.