Biotech research organizations have received funds from a number of institutional investors thus far in 2024.
In March, the clinical-stage company CervoMed said it had entered into a definitive securities purchase agreement for a private placement to sell an aggregate of 2,532,285 common stock shares and warrants to purchase shares of its common stock to a group of institutional and accredited healthcare specialist investors — which included global value-oriented and event-driven hedge fund Armistice Capital, investment company RA Capital Management, and healthcare investment firm Soleus Capital.
The company said in a press release that it anticipated the private placement would produce approximately $50 million in gross proceeds. It planned to use the net proceeds from the financing to fund operating expenses and research relating to its clinical-stage neflamapimod[EB2] medication, which treats central nervous system disorders such as strokes, dementia with Lewy bodies, and Alzheimer’s disease.
Multi-asset immunology company Zura Bio Limited, which formulates novel dual-pathway antibodies for autoimmune and inflammatory diseases, also entered into subscription agreements for a private placement in April that was expected to produce gross proceeds of approximately $112.5 million.
Investors such as private and public biopharma-based global investment firm Access Biotechnology, Armistice Capital, RA Capital Management and health care-oriented private investment firm Great Point Partners, LLC participated in the deal.
In May, clinical-stage biopharmaceutical company Corvus Pharmaceuticals, Inc. announced it had entered into a securities purchase agreement with new and existing investors such as Armistice Capital and asset management firm Point72.
Corvus, which develops immunotherapy options for a range of cancer and immune diseases, said it expected the agreement to raise roughly $30.6 million in aggregate gross proceeds.
GenSight Biologics, another biotech company, said in May that it had offered shares through a private placement. The company’s shareholders include healthcare investment firm Sofinnova, investment firm Invus and Armistice Capital.
GenSight, which develops gene therapies for retinal neurodegenerative diseases and central nervous system disorders, said it planned to utilize the net proceeds to finance general corporate expenses and manufacturing operations and regulatory procedures that relate to its gene therapy product for Leber hereditary optic neuropathy (LHON) — a rare genetic disease that can affect the optic nerves and lead to vision loss, according to the North American Neuro-Ophthalmology Society.
“This fundraising marks an inflection point in our journey and demonstrates the confidence of investors in our vision and ability to achieve our strategic objectives,” GenSight CEO Laurence Rodriguez said in a press release. “We are grateful to our historic investors for their continued support.”
