Biomea Fusion plunges on $25 mln stock-and-warrants offering

Biomea Fusion

07/10/2025 13:45

** Biomea Fusion's BMEA.O shares down 25.8% at $1.98 premarket after equity raise news

** San Carlos, California-based BMEA early Tues announces pricing about 12.2 mln shares, including accompanying warrants and pre-funded warrants, for $25 mln gross proceeds

** Combined offering price of stock and warrants of $2.05 represents 23.2% discount to stock's last close

** Co plans to use net proceeds to fund Phase IIb development of icovamenib in type 2 diabetes and development of its next-gen, oral-small-molecule GLP-1 receptor agonist candidate, BMF-650, in obesity and diabetes, per the prospectus

 ** After the bell Mon, BMEA said icovamenib showed sustained blood sugar control in year-long mid-stage study and may benefit those not responding to GLP-1 therapies like Novo Nordisk's NOVOb.CO Ozempic

** With ~59.5 mln shares outstanding, BMEA has roughly $160 mln market cap through Mon

** Jefferies is sole bookrunner for the offering

** BMEA shares on Mon rose 24%, leaving them down 31% YTD

** 6 of 7 analysts covering BMEA rate the stock "strong buy" or "buy" and 1 has "hold"; median PT is $7, per LSEG data

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))