Disc Medicine launches $220 million stock offering for drug commercialization

WATERTOWN, Mass. - Disc Medicine, Inc. (NASDAQ:IRON), whose shares have surged nearly 25% in the past week and 113% over six months according to InvestingPro data, announced Monday the commencement of an underwritten offering of $220 million of its common stock and pre-funded warrants, with the company offering $200 million and selling stockholder AI DMI LLC offering $20 million.

The clinical-stage biopharmaceutical company, which focuses on treatments for hematologic diseases and maintains a strong liquidity position with a current ratio of 32.11, plans to use proceeds to support potential commercialization of bitopertin for erythropoietic protoporphyria and X-linked protoporphyria, fund research and clinical development of current or additional product candidates, and for working capital.

The selling stockholder intends to grant underwriters a 30-day option to purchase up to an additional $33 million of shares. Jefferies, Leerink Partners, Morgan Stanley and Cantor are acting as joint book-running managers for the proposed offering.

Disc Medicine will not receive any proceeds from shares sold by the selling stockholder. The offering is being made pursuant to shelf registration statements previously filed with the Securities and Exchange Commission.

The company noted that the proposed offering is subject to market and other conditions, with no assurance regarding completion timing or final terms.

Disc Medicine is developing therapeutic candidates targeting heme biosynthesis and iron homeostasis pathways to address a spectrum of hematologic diseases.

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

In other recent news, Disc Medicine has submitted a New Drug Application for bitopertin aimed at treating erythropoietic protoporphyria (EPP) and has received a priority review voucher from the FDA. This voucher, part of the FDA Commissioner’s National Priority Voucher program, is expected to significantly expedite the approval process, potentially allowing for commercialization in late 2025 or early 2026. Wells Fargo has reiterated its Overweight rating on Disc Medicine, maintaining a price target of $91, indicating continued confidence in the company’s prospects. The FDA’s recognition of Disc Medicine as a recipient of the National Priority Review Voucher underscores the potential impact of bitopertin in addressing a critical unmet medical need. Additionally, Disc Medicine is set to present updated clinical data on its drug DISC-0974 at the upcoming American Society of Nephrology Kidney Week. This presentation will cover various aspects of the Phase 1b study, including safety and efficacy data in patients with non-dialysis-dependent chronic kidney disease and anemia. These developments highlight Disc Medicine’s active role in advancing treatments for significant health conditions.

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