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SAN CARLOS, Calif. - Biomea Fusion, Inc. (NASDAQ:BMEA), a clinical-stage diabetes and obesity company with a market capitalization of approximately $159 million, announced Monday it has commenced an underwritten public offering of shares of its common stock and accompanying warrants. The company’s stock has declined about 45% year-to-date, currently trading at $2.67.
The offering will include options for pre-funded warrants in lieu of common stock for certain investors. Biomea intends to grant underwriters a 30-day option to purchase up to an additional 15% of the shares and/or warrants in the proposed offering. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 3.68 and more cash than debt on its balance sheet.
Jefferies is acting as the sole book running manager for the offering, which is subject to market conditions. The company noted there is no guarantee regarding when or if the offering will be completed, or its final size and terms.
The securities will be offered through Biomea’s shelf registration statement on Form S-3, which was filed with the SEC on August 5, 2025, and declared effective on August 15, 2025.
Biomea Fusion is currently developing oral small molecule therapies, including icovamenib and BMF-650, targeting diabetes and obesity. The company describes its mission as delivering treatments for patients with these conditions. Analysts maintain an optimistic outlook, with price targets ranging from $4 to $16 per share. For deeper insights into Biomea’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
All securities in the offering will be sold by Biomea, according to the press release statement. The company did not disclose the expected pricing or total value of the offering in its announcement.
In other recent news, Biomea Fusion reported 52-week results from its Phase II COVALENT-111 clinical trial, which evaluated the experimental diabetes drug icovamenib in adults with type 2 diabetes. The trial demonstrated sustained treatment benefits, with patients maintaining a 1.2% reduction in HbA1c levels nine months after treatment ended. The most successful group achieved a 1.5% reduction, highlighting the drug’s potential for managing hard-to-treat diabetes cases. Jefferies has initiated coverage on Biomea Fusion with a Buy rating, citing the promising potential of its diabetes drug. The firm set a price target of $5.00, reflecting confidence in the company’s clinical-stage focus on developing oral small molecule medicines for diabetes and obesity. Additionally, Biomea Fusion announced the appointment of Julianne Averill to its Board of Directors, effective July 2025. Averill will also serve on the company’s Audit Committee, succeeding Bihua Chen, who stepped down after over four years. These developments mark significant progress for Biomea Fusion in advancing its clinical and corporate strategies.
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