Bright Minds Biosciences falls after $100 mln equity offering launched

Toronto-Dominion Bank

07/01/2026 15:53

** U.S.-listed shares of Bright Minds Biosciences DRUG.O down 11.8% to $82.25 after follow-on offering news

** Canadian biotech firm late Tues launched $100 mln offering comprised of stock and pre-funded warrants

** DRUG shares on Tues surged as much as 55% before closing up 16.5% at $93.21 after co early in the day announced positive Phase 2 trial results for BMB-101 in epilepsy patients

** TD Cowen, which has a 'buy' rating on the shares, said in a research note "Overall, the data surpassed the bar set by the company and we believe even the higher efficacy bar set by investors per our recent conversations"

** Co plans to use net offering proceeds to fund future clinical trials for its drug candidates, including for absence seizures, Developmental and Encephalopathic Epilepsies (DEE), and Prader-Willi Syndrome, among other uses

** Jefferies, TD Cowen, Piper Sandler & Co., and Cantor Fitzgerald are joint bookrunners

** With ~7.8 mln shares outstanding, co had about $700 mln market cap through Tues

** U.S.-listed shares have more than tripled over the past six months

** All 6 analysts are bullish on the shares; their median PT is $142, per LSEG data

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

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