RARE Daily

Avidity Biosciences Raises $400 Million in Private Placement

February 29, 2024

Rare Daily Staff

Avidity Biosciences became the third rare disease focused therapeutics developer to raise capital through a private placement offering of public equity bringing the total raised by these companies to $1.25 billion.

Avidity agreed to sell 15,2 million shares of its common stock at a price of $16.50 per share and pre-funded warrants to purchase 9 million shares of its common stock at a price per pre-funded warrant of $16.4990 to a select group of institutional and accredited healthcare specialist investors in an oversubscribed private placement. Avidity anticipates the gross proceeds from the private placement to be approximately $400 million, before deducting any offering-related fees and expenses.

Avidity intends to use the net proceeds from the proposed financing to fund research and development of its clinical-stage product candidates, other research programs, working capital and general corporate purposes. The proceeds from this financing, combined with current cash, cash equivalents and investments, are expected to fund current operations into late 2026.

Avidity is developing new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs), one of which was granted Rare Pediatric Disease designation by the U.S. Food and Drug Administration for the treatment of Duchenne muscular dystrophy in people living with mutations amenable to exon 44 skipping.

The AOCs are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies. Utilizing its proprietary AOC platform, Avidity has demonstrated the first-ever successful targeted delivery of RNA into muscle and is leading the field with clinical development programs for three rare muscle diseases: myotonic dystrophy type 1, Duchenne muscular dystrophy, and facioscapulohumeral muscular dystrophy.

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