Quoin Pharma Skyrockets Over 150% on $104.5M Financing Deal
Private placement priced at a premium signals strong investor confidence and extends the company's operational runway into 2027.
Shares of Quoin Pharmaceuticals (NASDAQ: QNRX) skyrocketed more than 150% in Friday trading after the specialty pharmaceutical company announced a significant private placement financing deal. The agreement with new healthcare-focused institutional investors could provide up to $104.5 million in funding, bolstering the company's balance sheet and extending its operational runway for several years.
The market's enthusiastic response was largely driven by the terms of the deal. The financing was priced at $8.25 per American Depositary Share (ADS), a substantial premium over the previous day's closing price of $8.16. This premium pricing is often interpreted as a strong vote of confidence from institutional investors in the company's future prospects. , reaching as high as $20.40 on massive trading volume.
According to the , the financing includes an initial upfront investment of $16.5 million. The structure of the deal includes the issuance of ADSs or pre-funded warrants, along with accompanying warrants exercisable in four tranches, creating the potential for the full $104.5 million infusion over time.
Quoin Pharmaceuticals intends to use the net proceeds to advance the clinical development of its lead product candidate, QRX003, for the treatment of Netherton Syndrome, a rare hereditary skin disorder. The company stated that the capital raised is expected to fund its operations into 2027, providing a crucial long-term financial runway to pursue its research and development goals. This effectively removes immediate funding pressures and allows management to focus on executing its clinical and regulatory strategy. The private placement is expected to close on or about October 14, 2025, subject to customary closing conditions.