Petros Pharmaceuticals Announces Capital Raise of $15 Million

Petros Pharmaceuticals Secures $15 Million in Capital Raise to Accelerate Growth and Innovation

Petros Pharmaceuticals, Inc., a pioneer in expanding consumer access to medication through the over the counter (OTC) pathway, announces a $15 million private placement financing that will support its continued progress towards bringing its erectile dysfunction (ED) drug, STENDRA, to non-prescription OTC status.

Petros raised $15 million from this private placement, which was led by its largest existing shareholders. The funds raised combined with the cash on its balance sheet ($8.3 million as of March 31, 2023), is expected to provide the Company with a strong cash position that will fund its initiatives through the end of 2024, enabling significant progress on its pathway to OTC approval as well as partnership opportunities. The closing of the private placement is subject to customary closing conditions and is expected to occur on or around July 17, 2023.

Since announcing the completion of a series of initial formative studies, Petros has continued to progress in its development program. Recently, the Company has conducted three engagements with the U.S. Food and Drug Administration (FDA) reviewing data and receiving guidance, launched a second pivotal Label Comprehension Study incorporating FDA feedback, and has begun to integrate supportive technology in response to recent FDA industry-wide guidance and proposed rules. This financing will enable the organization to continue its progress.

"We have made substantial progress in our efforts to achieve OTC status for STENDRA, which could be the first prescription ED drug to achieve non-prescription designation," commented Fady Boctor, Petros Pharma's President and Chief Commercial Officer. "The continued investment and support by our largest shareholders highlight their commitment to our strategy, sharing our excitement and passion. With this financing we believe we will be well capitalized through 2024 and to the completion of significant milestones along the OTC pathway, including significant interactions with FDA, multiple data readouts, as well as key technology and developmental partnerships, which we believe are essential to the successful execution of an OTC strategy.

"According to Market.us, it is estimated that the total ED market will reach $6.1 billion by 2032 with an average CAGR of 6.8%. The estimated revenue share for North America alone is 51% of that estimate, and we believe these to be understated based on an observed hesitance on the part of most men to seek treatment, even with the option to access these via online prescriptions.¹

"Given this substantial Rx ED market, we believe that the prospects of expanded nonprescription access of prescription-grade ED therapy has the potential to significantly multiply this market's growth. With several recently publicized positive OTC switch events, and the potential for applying the principals of AI to ensure that those who are appropriate to receive it do, we have boldly identified this mission of developing STENDRA as the potentially first prescription-grade pharmaceutical available without a prescription, as our primary objective as a company," concluded Mr. Boctor.

The company believes that its technology platform designed for this program may also apply to future asset candidates, enabling an expansion to the company's future portfolio and overall opportunity.

Published on : 14th July, 2023