Cabaletta Bio announces public offering of common stock and warrants

PHILADELPHIA - Cabaletta Bio, Inc. (NASDAQ:CABA) announced today it has commenced an underwritten public offering of shares of its common stock and accompanying warrants to purchase shares of its common stock. The company, which currently maintains a market capitalization of approximately $119 million, has seen its stock deliver a strong return over the past three months despite experiencing significant volatility.

The clinical-stage biotechnology company, which focuses on developing targeted cell therapies for autoimmune diseases, will also offer pre-funded warrants to certain investors in lieu of common stock. All securities in the offering will be sold by Cabaletta. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a current ratio of 3.96x, though it’s currently experiencing rapid cash burn.

Jefferies, TD Cowen and Cantor are serving as joint book-running managers for the proposed offering, which is expected to close on or about Thursday, subject to customary closing conditions. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with analysts setting price targets ranging from $3 to $28 per share.

The company intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares and warrants offered in the public offering. The stock has shown significant price movements over the past year, with InvestingPro identifying several additional key metrics and insights available to subscribers.

The securities are being offered pursuant to a shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission and declared effective on March 31, 2025.

Cabaletta’s lead investigational therapy, rese-cel, is a CD19-CAR T cell therapy currently being evaluated in clinical development programs across multiple therapeutic areas including rheumatology, neurology and dermatology.

The offering is subject to market and other conditions, and the company noted there can be no assurance as to whether or when the offering may be completed, or its actual size or terms.

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

In other recent news, Cabaletta Bio, Inc. reported promising clinical data for its investigational cell therapy, rese-cel, showing positive responses in patients with myositis, lupus, and systemic sclerosis. This includes significant improvements in patients who were able to discontinue immunomodulatory drugs and steroids. The company is advancing its RESET clinical trial program and plans to initiate new registrational cohorts this year. Meanwhile, Cabaletta Bio announced a repricing of stock options for employees and key personnel, aiming to retain talent during a critical phase. This move affects options under the company’s 2018 and 2019 Stock Option and Grant Plans, with new exercise prices contingent on a retention period.

Analyst updates have also been notable, with UBS lowering the price target for Cabaletta Bio to $7 while maintaining a Buy rating. This adjustment follows the company’s earnings report and a new case of Grade 3 immune effector cell-associated neurotoxicity syndrome (ICANS) in its trials. Stifel analysts similarly reduced their price target to $13 from $26, citing safety concerns related to CAR-T therapies. Despite these reductions, both firms maintain a positive outlook on Cabaletta Bio’s stock, underscoring the potential of its therapies. These developments emphasize the ongoing challenges and opportunities facing Cabaletta Bio as it navigates its clinical and strategic initiatives.

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