Bellus Health Inc. shares surged on Monday after the company revealed promising test results for a treatment for chronic cough -- and it moved quickly to capitalize on investors’ interest. 

The Laval, Que.-based biotech firm said in the morning its therapeutic treatment for refractory chronic cough (RCC) achieved a 34 per cent reduction in cough frequency in a Phase 2b trial. 

Shortly after the close of trading, on a day when its shares jumped 49 per cent, Bellus announced it intends to raise US$175 million in a sale of common shares. The proceeds are earmarked for research and development, among other purposes, according to a release from the company. The offering is being led by Jefferies, Evercore ISI, and RBC Capital Markets. 

“We are extremely pleased with the compelling topline results from the Phase 2b SOOTHE trial which highlight BLU-5937’s best-in-class potential for the treatment of refractory chronic cough,” said Roberto Bellini, chief executive officer of Bellus Health, in the release about the trial results. 

“RCC is a prevalent and growing condition that significantly impacts the quality of life of an estimated nine million patients in the United States and nine million patients in Europe.”

Following the conclusion of its Phase 2 trial, Bellus said it will request a meeting with the U.S. Food and Drug Administration about commencing a Phase 3 trial, which the company said is expected to commence in the second half of 2022.