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Finance Watch: PIPEs Still Key Even As FOPO Fundraising Climbs

PTC Raises $150m In A PRV Sale

 
• By Mandy Jackson

Public Company Edition: Biomedtracker data show the amount of money raised in both PIPEs and follow-on offerings surging in 2024. Olema and Cidara raised $250m and $105m, respectively, in recent private placements, while Spyre and Replimune grossed $200m and $140m in FOPOs.

Finance Watch Public Company
• Source: Alamy

Private investment in public equity (PIPE) transactions continue to be an important means of fundraising for publicly traded biopharmaceutical companies while the financial markets continue to recover, even with follow-on public offerings (FOPOs) surging. Biomedtracker data show that the amount of money raised in PIPEs, FOPOs and initial public offerings globally during the first three quarters of 2024 has far outpaced the first three quarters of 2023.

Olema Pharmaceuticals Inc. continued the streak of PIPE financings in the fourth quarter, with its announcement on 2 December that it grossed $250m from a private placement of common stock and warrants. The PIPE included the sale of 19.9 million shares at $9.08 each and up to 7.6 million pre-funded warrants at $9

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More from Finance Watch

Finance Watch: Prime, Kyverna, Allogene And More Announce Job Cuts

 
• By Mandy Jackson

Restructuring Edition: Prime Medicine ended its sole clinical-stage program to prioritize preclinical and partnered programs, cutting 25% of its workforce to extend its cash runway. Meanwhile, earnings season brought workforce reductions at Kyverna, Allogene, Leap and others.

Finance Watch: Funding Alternatives Become The Norm In Tough Public Markets

 
• By Mandy Jackson

Public Company Edition: With fewer follow-on offerings, drug developers are pursuing other options. Axsome accessed up to $570m in debt, Evolus obtained $250m in a new credit facility and Abeona raised $155m from a PRV sale, but Apimeds was able to execute a small $13.5m IPO.

Finance Watch: Deerfield Closes $600m-Plus VC Fund; Gates Speeds Up Health Investments

 
• By Mandy Jackson

Private Company Edition: Deerfield’s third innovations fund will back therapeutics and other opportunities, the Gates Foundation – a sometimes funder of biotech firms – will spend $200bn over the next 20 years, and NewLimit raised a $130m series B round, among other financings.

Finance Watch: Unity Lays Off All Employees As It Evaluates Alternatives

 
• By Mandy Jackson

Restructuring Edition: Unity unveiled more Phase IIb data for lead asset UBX1325 along with plans to shed its workforce while seeking a partner for it and other drugs. Also, Ono is consolidating US employees at one site, Entrada is cutting its workforce by 20% and other recent strategic shifts.

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End Is Nigh For 4SC After EMA’s No For Kinselby

 
• By Kevin Grogan

The German biotech has discontinued the oral HDAC inhibitor for cutaneous T-cell lymphoma.

In Brief: Tourmaline Reports Positive Topline Phase II Results for Pacibekitug In CKD

 
• By Sushmita Panda

Based on first positive results for any quarterly IL-6 inhibitor, company plans to initiate Phase III cardiovascular outcomes trial.

Japan Pharma Sees US Revenues Grow But Policy Impact Still Unclear

 
• By Lisa Takagi

Japanese majors put in generally solid performances in the fiscal year ended 31 March, but overseas revenues and forex effects, rather than the domestic market, provided most of the growth.