Neurogene, a gene therapy developer focused on rare neurological diseases, has secured $200 million through a private funding deal that will extend its cash reserves into late 2027.
The company on Monday signed an agreement to raise the funds in a so-called PIPE financing, a deal in which publicly traded entity sells shares to private investors in a specially negotiated transaction. More than half a dozen investment firms, including RTW Investments, EcoR1 Capital and Samsara BioCapital, are involved. They’ll acquire just over 1.8 million shares of common stock at $50 apiece, and pre-funded warrants to buy another roughly 2.2 million shares at about the same price.
The deal is expected to close around Nov. 5.
The raise will support development of a gene therapy dubbed NGN-401 that’s being developed for the rare brain disease Rett syndrome. NGN-401 is currently in early-stage testing, with interim results expected next Monday. Neurogene will use the funds to back a registrational trial in Rett syndrome, scale up production and advance its pipeline, which also includes a candidate for Batten disease.
Shares of Neurogene, which had more than tripled since the company went public through a reverse merger last year, surged another 40% on Monday following the announcement. The financing “bolsters expectations of positive data next week,” wrote Leerink Partners analyst Mani Foroohar, in a Monday research note. It also addresses concerns from investors that the company might have had to tap the public equity markets for cash following the results, he added.
The funding comes at a time when gene and cell therapy developers have struggled to attract investments. Reports published earlier this year showed a sharp drop-off in venture funding, an issue industry insiders have attributed to a shift towards safer drug development bets. Several companies in the space have trimmed pipelines, laid off staff or pivoted their research focus to stay afloat.
Still, some companies have been able to find funding success. In September, Arsenal Biosciences raised $325 million in the largest private round for a cell therapy developer this year, according to BioPharma Dive data. Purespring Therapeutics and AvenCell Therapeutics followed in October with venture rounds surpassing $100 million.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.biopharmadive.com/news/neurogene-pipe-financing-rett-syndrome/731886/