Neurogene Raises 0 Million Prior to Expected Study Results Announcement

Neurogene Raises 0 Million Prior to Expected Study Results Announcement

Neurogene Raises 0 Million Prior to Expected Study Results Announcement

Neurogene, a developer of gene therapies targeting rare neurological conditions, has successfully raised 0 million via a private financing round, which will extend its financial resources until late 2027.

On Monday, the company announced an agreement to secure these funds through a PIPE financing, a method where a publicly listed company sells shares directly to private investors under specially agreed terms. The round includes participation from several investment firms, such as RTW Investments, EcoR1 Capital, and Samsara BioCapital. They will purchase slightly over 1.8 million shares of common stock at a price of each, along with pre-funded warrants to buy an additional approximately 2.2 million shares at a similar valuation.

The conclusion of this transaction is anticipated around November 5.

This funding will enhance the advancement of a gene therapy known as NGN-401, targeting Rett syndrome, a rare brain condition. Currently, NGN-401 is in the early stages of clinical testing, with interim results scheduled for release next Monday. Neurogene plans to allocate these funds to support a registrational trial for Rett syndrome, increase production capabilities, and foster the growth of its therapeutic pipeline, which also includes a potential treatment for Batten disease.

Shares of Neurogene have experienced over a threefold increase since the company went public through a reverse merger last year, and gained an additional 40% on Monday following this funding announcement. This financing “strengthens expectations of favorable data coming next week,” noted Mani Foroohar, an analyst at Leerink Partners, in a Monday research report. Furthermore, the raise alleviates investor concerns regarding the potential necessity for the company to seek public equity cash after the upcoming results.

This funding arrives amid a landscape where gene and cell therapy companies have faced challenges in securing investment. Recent reports indicate a significant decline in venture capital funding, which industry experts ascribe to a pivot towards safer drug development investments. Numerous companies in this sector have downsized their operations, reduced workforce, or shifted their research directions to maintain viability.

However, there are instances of funding achievements within the industry. In September, Arsenal Biosciences raised 5 million, representing the largest private round for a cell therapy company this year, according to data from BioPharma Dive. Additionally, Purespring Therapeutics and AvenCell Therapeutics also surpassed 0 million in their respective venture rounds in October.