SpringWorks Raises $275 Million in Upsized Public Offering
December 5, 2023
Rare Daily Staff
One week after receiving U.S. Food and Drug Administration approval to market its desmoid tumor therapeutic Ogsiveo, SpringWorks Therapeutics raised $275 million through a public offering.
The rare disease and cancer focused biotech priced an underwritten public offering of 9.5 million shares of its common stock at a public offering price of $29.00 per share. The gross proceeds from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $275.0 million. In addition, SpringWorks has granted the underwriters a 30-day option to purchase up to an additional 1.4 million shares of its common stock at the public offering price, less underwriting discounts and commissions.
SpringWorks has a diversified targeted oncology pipeline spanning solid tumors and hematological cancers, including clinical trials in rare tumor types and highly prevalent, genetically defined cancers. Ogsiveo, an oral, selective, small molecule gamma secretase inhibitor, is the company’s first FDA approved therapy, and was approved for the treatment of adult patients with progressing desmoid tumors who require systemic treatment.
Desmoid tumors are locally aggressive and invasive soft-tissue tumors that can lead to substantial morbidity. In addition, when vital structures are impacted, desmoid tumors can be life-threatening. Although they do not metastasize, desmoid tumors are often refractory to existing off-label systemic therapies and associated with recurrence rates of up to 77 percent following surgical resection. Desmoid tumor experts and treatment guidelines now recommend systemic therapies as first-line intervention instead of surgery for most tumor locations requiring treatment.
SpringWorks is also evaluating nirogacestat as a potential treatment for patients with ovarian granulosa cell tumors and for patients with multiple myeloma as part of several B-cell maturation agent combination therapy regimens in collaboration with leaders in industry and academia.
Sign up for updates straight to your inbox.