RARE Daily

Disc Medicine Prices Upsized Public Offering of Common Stock and Pre-Funded Warrants

June 14, 2023

Rare Daily Staff

On the heels of reporting positive data for bitopertin in rare blood disorder, Disc Medicine went to the markets to raise $137.2 million in a public stock offering.

Disc priced 2.6 million shares of common stock and pre-funded warrants to purchase 204,081 shares of common stock in the offering at a public offering price of $49.00 per share, and the pre-funded warrants at $48.9999 per pre-funded warrant.

In addition, Disc has granted the underwriters a 30-day option to purchase up to an additional 420,000 shares of its common stock at the public offering price, less underwriting discounts and commissions.

Disc intends to use the net proceeds from the offering to fund research and clinical development of its product candidates, as well as for working capital and other general corporate purposes.

The company recently presented positive preliminary findings from its ongoing, phase 2 open-label BEACON trial evaluating lead candidate bitopertin in patients with the rare blood disorders erythropoietic protoporphyria (EPP) and X-linked protoporphyria (XLP) at the European Hematology Association 2023 Congress in which initial trial data demonstrated dose-dependent reductions of protoporphyrin IX (PPIX), significant increases in reported sunlight tolerance, and improvements in measures of patient quality of life.

EPP and XLP are rare, debilitating and potentially life-threatening diseases caused by mutations that affect heme biosynthesis, resulting in the accumulation of a toxic, photoactive intermediate called protoporphyrin IX (PPIX). This causes severe reactions when patients are exposed to sunlight, characterized by excruciating pain, edema, burning sensations and potential blistering and disfigurement. PPIX also accumulates in the hepatobiliary system and can result in complications including gallstones, cholestasis, and liver damage in 20 to 30 percent of patients and in extreme cases liver failure.

At the end of March, Disc reported full year 2022 financial results, which included completing a reverse merger with Gemini Therapeutics to debut on Nasdaq, initiating two phase 2 trials of bitopertin in EPP, and ending the year with approximately $195 million in cash and cash equivalents.

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