Prime Medicine drops on $125 mln equity raise

Prime Medicine

31/07/2025 11:35

** Shares of gene-editing firm Prime Medicine PRME.O drop 13% to $3.41 before the bell in wake of pricing overnight follow-on

** Cambridge, Massachusetts-based PRME late Weds announced 38 mln shares at $3.30 for gross proceeds of $125.4 mln

** Offering priced at 15.8% discount to stock's last sale

** PRME intends to use net proceeds primarily to fund R&D to support its Wilson's Disease and AATD (Alpha-1 Antitrypsin Deficiency) programs, per the prospectus

** Co said also to continue its in vivo cystic fibrosis program with support from the Cystic Fibrosis Foundation, and efforts to develop its CAR-T products for hematology, immunology and oncology in partnership with Bristol-Myers Squibb BMY.N

** TD Cowen and BMO are jt bookrunners for the offering

** PRME has ~134.5 mln shares outstanding for roughly $525 mln market cap, per LSEG data

** Through Weds close, PRME shares had gained ~59% in Jul, putting them up 34% YTD

** 7 of 11 analysts rate the shares "strong buy" or "buy", rest rate "hold" and median PT is $7 - LSEG

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

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