Disc Medicine prices $250 million upsized stock offering

WATERTOWN, Mass. - Disc Medicine, Inc. (NASDAQ:IRON), a clinical-stage biopharmaceutical company focused on hematologic diseases with a market capitalization of $3.03 billion, announced Tuesday the pricing of its upsized public offering valued at approximately $250 million. The company’s stock has shown remarkable momentum, gaining over 23% in the past week. According to InvestingPro analysis, the stock’s technical indicators suggest it may be in overbought territory.

The company is selling 2,619,049 shares of common stock and pre-funded warrants to purchase 59,523 shares at $84.00 per share and $83.9999 per warrant, respectively. Additionally, selling stockholder AI DMI LLC is offering 297,619 shares. InvestingPro data shows the company maintains a strong financial position with a healthy current ratio of 32.11, indicating robust liquidity.

Disc Medicine expects to receive approximately $225 million in gross proceeds from the transaction, while the selling stockholder will receive about $25 million. The offering is expected to close on October 22, 2025, subject to customary closing conditions.

The selling stockholder has granted underwriters a 30-day option to purchase up to an additional 446,428 shares at the public offering price.

Disc Medicine plans to use the 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 and general corporate purposes. The company’s strong balance sheet, with more cash than debt, positions it well for these initiatives. Discover more detailed financial insights and 16 additional ProTips with InvestingPro’s comprehensive research report.

Jefferies, Leerink Partners, Morgan Stanley and Cantor are serving as joint book-running managers for the offering, with Wedbush PacGrow and H.C. Wainwright & Co. acting as co-managers.

The offering is being made through previously filed shelf registration statements with the Securities and Exchange Commission.

This article is based on a press release statement from Disc Medicine.

In other recent news, Disc Medicine has announced the launch of a $220 million stock offering aimed at supporting the commercialization of its drug bitopertin for erythropoietic protoporphyria and X-linked protoporphyria. The company is offering $200 million, while stockholder AI DMI LLC is contributing $20 million. Additionally, Disc Medicine has submitted a New Drug Application for bitopertin, which has received priority review status from the FDA. This priority review could accelerate the approval timeline, potentially allowing for commercialization in late 2025 or early 2026.

Wells Fargo has reiterated its Overweight rating for Disc Medicine, maintaining a price target of $91.00, as stated by analyst Derek Archila. The company has also been named one of the initial recipients of the FDA Commissioner’s National Priority Review Voucher, which could significantly speed up the approval process for bitopertin. Furthermore, Disc Medicine plans to present updated clinical data from its Phase 1b study of DISC-0974 at the 2025 American Society of Nephrology Kidney Week. This presentation will cover safety, tolerability, and various pharmacological markers for patients with non-dialysis-dependent chronic kidney disease and anemia.

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