Quoin Pharmaceuticals Ltd. has entered into a private placement financing for up to approximately $50 million, providing the late clinical-stage specialty pharmaceutical company with capital to advance QRX003 for Netherton Syndrome and support its broader rare and orphan disease pipeline
The Ashburn, Virginia-based company expects to receive approximately $30.8 million in upfront gross proceeds, with another approximately $19.2 million potentially available if investors exercise accompanying warrants for cash. Quoin said aggregate net proceeds, assuming all of the warrants are exercised for cash, are expected to fund operations into the second half of 2029
The financing drew participation from new and existing healthcare-focused institutional investors, including Sirenia Capital Management, Sphera Healthcare, AIGH Capital Management, Nantahala Capital, StemPoint Capital and Stonepine Capital Management. Members of Quoin’s management team and board of directors are also participating
Quoin, which trades on Nasdaq under the ticker QNRX, plans to use the upfront net proceeds for general corporate purposes, including research and development and completion of the clinical development program for QRX003 in Netherton Syndrome. Capital may also be directed toward operating expenses, working capital, future acquisitions and general capital expenditures
The financing provides Quoin with additional runway as QRX003 moves through late-stage clinical development. Netherton Syndrome is a rare genetic skin disorder and represents a key development indication for the company
Under the securities purchase agreement, Quoin will issue an aggregate of 6,305,300 American Depositary Shares, or pre-funded warrants in lieu of ADSs, along with ordinary warrants to purchase up to an additional 3,152,650 ADSs
The combined purchase price is $4.88 per ADS and accompanying ordinary warrant. The ordinary warrants have an exercise price of $6.10 per ADS, which could generate approximately $19.2 million in additional gross proceeds if exercised in full for cash
The structure links the potential second tranche of capital to both investor decisions and Quoin’s clinical progress. The ordinary warrants are immediately exercisable and expire on the earlier of five years following the financing’s closing or 30 days after Quoin publicly announces that the primary endpoint has been met in clinical trial CL-QRX003-004
That study is evaluating QRX003 as a potential treatment for Netherton Syndrome. A successful primary endpoint announcement could therefore accelerate the timeline for warrant holders to decide whether to exercise their securities
Certain investors are purchasing pre-funded warrants instead of ADSs. Those securities and the accompanying ordinary warrants are priced at $4.8799, reflecting the $4.88 ADS package price less the pre-funded warrant’s $0.0001 exercise price
The private placement is expected to close on or about August 31, 2026, subject to customary closing conditions
Leerink Partners is serving as lead placement agent, while BTIG and Lake Street Capital Markets are acting as co-placement agents
The financing strengthens Quoin’s capital position as it develops a pipeline centered on QRX003 and QRX009. The company is pursuing treatments across a range of rare and orphan conditions where patients can have limited therapeutic alternatives
Beyond Netherton Syndrome, Quoin has identified potential indications including Peeling Skin Syndrome, Palmoplantar Keratoderma, Pachyonychia Congenita, Gorlin Syndrome, Tuberous Sclerosis Complex, microcystic lymphatic malformations, venous malformations and angiofibromas
For Quoin, the immediate $30.8 million financing provides capital to continue advancing that development strategy without depending on the future warrant proceeds. Full exercise of the accompanying warrants would extend the company’s re latter half of 2029 under that scenario
The securities are being issued through a private placement and have not been registered under the Securities Act of 1933 or applicable state securities laws. Quoin has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the ADSs issued in the transaction and shares underlying the pre-funded and ordinary warrants
