RARE Daily

Two Biotechs Raise Combined $300 Million to Advance Rare Disease Pipelines

February 15, 2024

Rare Daily Staff

Two biopharmaceutical companies developing therapeutics for rare diseases tapped the public markets for fresh capital, bringing the total raised by eight such companies to over the past week to $1.45 billion.

On the heels of positive late-stage data of its lead candidate sebetralstat as the first oral on-demand therapy for hereditary angioedema, KalVista Pharmaceuticals raised fresh capital through an underwritten public offering.

The company priced 7 million shares of its common stock at a price to the public of $15.25 per share and pre-funded warrants to purchase 3.5 million shares of common stock in lieu of KalVista common stock to certain investors. The gross proceeds to KalVista from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by KalVista, are expected to be $160.1 million.

In addition, KalVista has granted the underwriters a 30-day option to purchase up to an additional 1.6 million shares of common stock at the public offering price, less underwriting discounts and commissions. The pre-funded warrants will be exercisable immediately and may be exercised at any time after their original issuance.

KalVista intends to use the net proceeds from this offering to fund the continued clinical development of its product candidate sebetralstat and activities related to its planned commercialization following approval, as well as continued preclinical activities for its oral factor XIIa inhibitor program. The remainder of the net proceeds, if any, will be used for general corporate purposes.

The company anticipates submitting a new drug application to the U.S. Food and Drug Administration for sebetralstat in the first half of 2024 and expects to file for approval in Europe and Japan later in 2024.

Genetic medicines biotech Prime Medicine raised $140 million, pricing an underwritten upsized public offering of 19.2 million shares of its common stock at a public offering price of $6.25 per share and, in lieu of common stock to certain investors, pre-funded warrants to purchase 3.2 million shares of common stock at a public offering price of $6.24999 per pre-funded warrant.

Prime Medicine also granted the underwriters a 30-day option to purchase up to an additional 3.4 million shares of its common stock.

Prime Medicine is focused on creating and delivering the next generation of gene editing therapies to patients by leveraging its proprietary Prime Editing platform, a versatile, precise and efficient gene editing technology, to develop a new class of differentiated, one-time, potentially curative genetic therapies. Designed to make only the right edit at the right position within a gene while minimizing unwanted DNA modifications, Prime Editors have the potential to repair almost all types of genetic mutations and work in many different tissues, organs and cell types.

The company has a diversified portfolio of eighteen programs initially focused on genetic diseases with a fast, direct path to treating patients or with a high unmet need because they cannot be treated using other gene-editing approaches.

 

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