Assembly Bio prices $130 million offering to fund viral disease research

SOUTH SAN FRANCISCO - Assembly Biosciences, Inc. (Nasdaq:ASMB) announced Friday the pricing of an underwritten offering of approximately 6.6 million shares and warrants, raising about $130 million to support its viral disease therapeutic development programs. The company’s stock has shown remarkable momentum, with a nearly 60% price return over the past six months and is currently trading near its 52-week high of $22.50.

The biotechnology company priced the offering at $19.60 per share of common stock with accompanying warrants. The transaction includes 5,591,840 shares of common stock and pre-funded warrants to purchase up to 1,040,820 shares, along with Class A and Class B warrants.

The offering attracted investments from several healthcare-focused funds including Commodore Capital, Blackstone Multi-Asset Investing, Farallon Capital Management, Janus Henderson Investors, and RA Capital Management.

In a parallel transaction, Gilead Sciences, Inc. will purchase approximately 2.3 million shares with accompanying warrants in a private placement at the same price per share.

Class A warrants will have an exercise price of $21.60 per share and expire in five years or 30 days after Assembly Bio announces completion of enrollment for its Phase 2 clinical study evaluating ABI-5366 versus valacyclovir. Class B warrants, also priced at $21.60 per share, will be exercisable starting November 15, 2026, and expire December 31, 2026.

Both transactions are expected to close on August 11, with the closings contingent upon each other. Assembly Bio plans to use the proceeds for general corporate purposes.

Guggenheim Securities is serving as lead book-running manager for the offering, with Mizuho also acting as a book-running manager.

Assembly Biosciences focuses on developing small-molecule therapeutics for serious viral diseases including herpesvirus, hepatitis B virus, and hepatitis delta virus infections.

This information is based on a press release statement from the company.

In other recent news, Assembly Biosciences, Inc. announced positive interim results from a Phase 1b study of its investigational herpes simplex virus treatment, ABI-5366. The study showed a 94% reduction in HSV-2 shedding rate compared to placebo, surpassing the company’s target of 80-85%. Additionally, the same dosage led to a 94% reduction in genital lesion rate and a 98% reduction in high viral load shedding. In another development, the company reported positive topline results from a Phase 1b study of ABI-4334, a treatment for chronic hepatitis B virus infection. The trial demonstrated significant reductions in HBV DNA levels in two dosage cohorts. Furthermore, Assembly Biosciences announced key changes following its Annual Meeting of Stockholders, including amendments to its stock plans. These amendments increase the number of shares reserved for issuance under the 2018 Stock Incentive Plan and the Employee Stock Purchase Plan.

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