Biomea Fusion tumbles on deep-discounted $40 mln equity raise

Biomea Fusion

18/06/2025 11:07

** Biomea Fusion's BMEA.O shares down 26.6% to $2.13 before the bell after co raises equity at steep discount

** Redwood City, California-based drug developer late Tues announced 20 mln shares, including accompanying warrants and pre-funded warrants, for $40 mln gross proceeds

** Offering price of $2 represents 31% discount to stock's last close

** Co plans to use net proceeds to fund Phase IIb development of icovamenib in type 2 diabetes and the new drug application filing with U.S. FDA and clinical development of its next-gen, oral-small-molecule GLP-1 receptor agonist candidate, BMF-650, in obesity and diabetes, according to the SEC prospectus

** It has ~37.6 mln shares outstanding for $109 mln market cap through Tues

** Jefferies sole bookrunner for offering

** Through Tues close, BMEA shares have roughly doubled this month. Stock is well off its 52-week intraday high of $13.07 hit in Oct

** Of 9 analysts covering BMEA, recommendation breakdown is 7 "strong buy" or "buy" and 2 "hold" and median PT is $17, LSEG data reflects

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

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