GH Research PLC (Nasdaq: GHRS) has launched an underwritten public offering in the United States of $150 million of ordinary shares. In its offering documents, the company stated that they intend to strategically use net proceeds for research, technical and clinical development, as well as working capital and capital expenditures. Stocks fell over 8% after the announcement.
GH Research’s cash position was $193 million as of September 20, 2024. By the end of the year, this figure is likely to be around $182. This company is currently $97m in the red.
GH Research focuses on the development of novel, proprietary mebufotenin treatments for patients suffering from treatment-resistant Depression (TRD). Its portfolio includes GH001, a proprietary product candidate for inhalable and intravenous mebufotenin. Mebufotenin, also known as 5-MeO-NMT (5-Methoxy-N-Methyltryptamine), is a naturally occurring tryptamine alkaloid. It is structurally related to 5-MeO-DMT (5-Methoxy-Dimethyltryptamine) but differs in having only one methyl group on the amine rather than two.
GH001 delivers positive results
In its offering document, the company stated that, “While GH001 has been delivered using a vaporization product produced by a third-party, we have developed a proprietary aerosol delivering device currently under clinical study.” The company’s offering document stated that “We completed two Phase 1 trials with healthy volunteers for GH001″ (GH001 HV 101 and GH001 HV 103). In these studies, GH001 was administered via inhalation and the results were well tolerated. The Phase 1/2 trial was completed in TRD patients (GH001 TRD-102), and the phase 2b double-blind placebo-controlled trial (GH001 TRD-201) in TRD patients has just been completed. Based on observed clinical activity in these clinical trials, we believe that administration of GH001 has the potential to induce ultra-rapid remissions as measured by the Montgomery–Åsberg Depression Rating Scale, or MADRS.”
The company reported this week that it met its primary endpoint as GH001 led to an ultra-rapid anti-depressant effect with a significant placebo-adjusted MADRS reduction from a baseline of -15.5 on Day 8 (p<0.0001).
Patients treated with GH001 had a MADRS difference of -15.5 compared to the placebo at day 8, which was truly amazing,” stated Professor Michael E. Thase MD, Professor of Psychiatry Perelman Medical School, University of Pennsylvania. The majority of TRD patients do not benefit from the established treatment options. This illness can cause years of unrelenting mental suffering, and has a disabling effect on their social and occupational functioning. “A novel treatment that has such an immediate and large effect could be the treatment of choice for many patients, especially if it is only required infrequently, for a few hours, at a clinic.”