The company has not yet disclosed the volume of shares for sale or the target price, though the filing with the Securities and Exchange Commission confirms the inclusion of pre-funded warrants and a 30-day option for underwriters to purchase additional stock. Investors reacted to the dilution risk immediately, sending shares down 4.6% to $30 in post-market trading after the announcement.
In section Market Quotes
Neurogene Targets Fresh Capital for Rett Syndrome Therapy
Neurogene is heading back to the public markets to bolster its cash reserves, filing for a secondary share offering on Tuesday. The clinical-stage biotech aims to leverage a 53% surge in its share price this year to fund the ongoing development of its lead gene therapy candidate, NGN-401.
Proceeds from the offering are earmarked for clinical trials and pre-commercial preparations for NGN-401, a one-time gene therapy intended to treat Rett syndrome. This rare neurodevelopmental disorder impacts approximately one in 10,000 live female births globally. The capital injection arrives as the company manages rising costs; Neurogene posted a first-quarter loss of $30.9 million, or $1.39 per share, widening from a $22.6 million loss during the same period last year.
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