Funds Raised: David Domzalski Discusses the Closing of VYNE Therapeutics’ Private Placement

Shots:

David Domzalski, President & Chief Executive Officer at VYNE Therapeutics, in an invigorating conversation with PharmaShots
The PIPE transaction generated $88M ensuring a steady cash flow through the end of 2025 and multiple anticipated clinical catalysts across VYNE’s BET inhibitor platform
David believes the financing will be instrumental in the advancement of VYN201, into a P-IIb clinical trial in Vitiligo in H1’24 and the initiation of P-Ia SAD/MAD trial of VYN202 the Company's oral BD2-selective BET inhibitor, in Q1’24

Saurabh: Could you elaborate on the private placement that VYNE Therapeutics recently closed? Who took part in this private placement as an investor or participant?

David: VYNE raised a total of $88M in gross proceeds through a PIPE transaction, which provides the Company with funding through the end of 2025. Investors included some of the leading global healthcare funds, including Access Biotechnology who led the transaction, with participation from Eventide Asset Management, Cormorant Asset Management, Acorn Bioventures, Parkman Healthcare Partners, Surveyor Capital (a Citadel company), Soleus Capital, Palo Alto Investors LP, and other undisclosed investors. 

Saurabh: What is the status of VYNE Therapeutics' product development efforts and pipeline after this financing, in your opinion?

David: The proceeds from the financing provide cash runway through the end of 2025 and multiple anticipated clinical catalysts across VYNE’s BET inhibitor platform, including the advancement of VYN201 into a Phase 2b clinical trial in vitiligo in the first half of 2024, and the initiation of a Phase 1a SAD/MAD trial for VYN202, the Company's oral BD2-selective BET inhibitor, in the first quarter of 2024. Upon successful completion of the SAD/MAD study, VYNE plans to advance VYN202 into two Phase 1b proof-of-concept trials, one in moderate-to-severe plaque psoriasis and a second in moderate-to-severe adult-onset rheumatoid arthritis. VYNE has guided to topline readouts in mid-2025 for the VYN201 Phase 2b trial in vitiligo as well as the two VYN202 Phase 1b trials.  

Saurabh: Did you investigate some data and trend analysis before going for the private placement? If yes, from what type of data and how was this analysis done? 

David: For early-stage companies like VYNE, it’s often difficult to compete for investor mindshare, particularly with challenging markets as a backdrop. We took an organic approach to raising investor awareness of VYNE heading into our data readout, personally contacting a comprehensive group of fundamental healthcare funds providing them with routine updates on our progress. Once clinical data was available and with lines of communication already in place, it was a natural transition to have more robust discussions with these investors regarding a capital raise timed concurrently with the release of our positive data. 

Saurabh: Does this announcement have any implications for VYNE Therapeutics' stock price or market position?  

David: We typically do not comment specifically on our stock price, as there many factors, including changing market conditions, that can affect stock price movements. However, the continued advancement of VYN201 in vitiligo, as well as the advancement of VYN202, are directly aimed at addressing significant unmet medical needs, and if successful, we believe this will create substantial value for our shareholders over time.  

Saurabh: Are there any plans for further fundraising or financial activities in the future for VYNE Therapeutics? 

David: Our recent financing provides cash runway through the end of 2025 and the next clinical milestones for each of our programs. As such, we have no immediate need or plans to conduct additional fund-raising.  In the future, as we continue to advance our pipeline through various milestones, we will revisit our capital needs accordingly.    

Saurabh: How will this financial support help the development of the existing pipeline and the future pipeline molecules?

David: The proceeds from the PIPE transaction are expected to fund operations through the end of 2025. Over this time, we expect to generate key clinical readouts across the VYN201 and VYN202 programs as outlined above. 

Image Source: Canva

About the Author:

David Domzalski

David Domzalski has served as our President and Chief Executive Officer and member of our board since March 2020. Previously, since July 2017, Mr. Domzalski was Chief Executive Officer and a member of the board of Foamix Pharmaceuticals Ltd. Mr. Domzalski was with Foamix since April 2014, and previously served as President.  He has 25 years of industry experience, previously holding positions as Vice President, Sales and Marketing, at LEO Pharma Inc. from 2009 to 2013, Senior Vice President and General Manager at Azur Pharma from 2008 to 2009, and Vice President, Sales and Marketing, at Warner Chilcott from 2003 to 2008. Mr. Domzalski holds a BA in economics and political science from Muhlenberg College, Allentown, Pennsylvania.