BOSTON & MONTREAL - enGene Holdings Inc. (NASDAQ: ENGN), a biotechnology firm focusing on genetic medicines, has announced the private placement sale of 6,758,311 common shares at $8.90 each. The transaction, expected to close on October 29, 2024, should generate approximately $60 million in gross proceeds, excluding offering-related expenses.
The company's lead product, detalimogene voraplasmid, is currently in a pivotal study for high-risk NMIBC patients with Cis, unresponsive to BCG treatment. The funding will support the development of detalimogene, pre-commercial activities, potential expansion of the DDX platform, and general corporate purposes. The proceeds, along with existing cash, are anticipated to fund operations into 2027.
Investors participating in this round include Deep Track Capital, Cormorant Asset Management, Forbion, OrbiMed, Sphera Healthcare, Vestal Point Capital, and Venrock Healthcare Capital Partners. Leerink Partners, Piper Sandler & Co., Guggenheim Securities, and Wells Fargo Securities served as placement agents.
The shares in this private placement have not been registered under the Securities Act of 1933 and are subject to a registration statement filed with the SEC for resale purposes. The offering of these securities will be made only by prospectus following registration.
This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of such jurisdiction.
enGene specializes in delivering therapeutics to mucosal tissues and other organs. Its proprietary DDX platform has enabled the development of detalimogene voraplasmid for NMIBC treatment. The information provided is based on a press release statement.
In other recent news, enGene Holdings Inc. has made significant strides in its operations. The company recently appointed Joan Connolly as Chief Technology Officer (CTO) and advanced its lead investigational product, detalimogene voraplasmid, in a pivotal study for high-risk, Bacillus Calmette-Guérin (BCG)-unresponsive, non-muscle invasive bladder cancer. These developments coincide with the company's preparation for a Biologics License Application (BLA) submission expected in mid-2026.
enGene's stock received attention from various analysts. Leerink Partners adjusted its price target for the company to $17 while maintaining an 'Outperform' rating. Meanwhile, Oppenheimer maintained its 'Outperform' rating and a $30 price target, and Morgan Stanley reaffirmed its 'Overweight' rating with a $40 price target for enGene.
The company also announced preliminary results from its LEGEND study for a bladder cancer treatment, detalimogene. The study reported complete response (CR) rates over various timeframes, with 71% at any time, 67% after three months, and 47% at six months. Furthermore, enGene plans to amend the LEGEND protocol and start enrolling additional cohorts in late 2024.
In addition, enGene's gene therapy EG-70, currently in clinical trials for treating non-muscle invasive bladder cancer (NMIBC), has garnered attention. Oppenheimer maintained its 'Outperform' rating for enGene, projecting potential due to EG-70's non-viral gene therapy nature and convenience of use.
Lastly, enGene's financial position was noted as robust following a $200 million private investment, with projected sales reaching approximately $530 million by 2031 after an expected product launch in 2027. These recent developments highlight enGene's progress in its operations and research.
InvestingPro Insights
enGene Holdings Inc. (NASDAQ: ENGN) is currently navigating a complex financial landscape as it advances its genetic medicine pipeline. The company's recent private placement of $60 million comes at a critical juncture, with InvestingPro data revealing a market capitalization of $393.52 million. This capital infusion is crucial, considering enGene's adjusted operating income of -$55.28 million for the last twelve months as of Q3 2024, highlighting the substantial costs associated with biotechnology research and development.
Despite the recent fundraising success, investors should note that enGene's stock is trading at just 20.23% of its 52-week high. This metric, coupled with a negative P/E ratio of -5.26, suggests that the market is pricing in significant risk and future earnings uncertainty. However, it's worth noting that biotechnology companies often operate at a loss during their development phases.
InvestingPro Tips provide additional context:
1. enGene has seen strong price momentum recently, with a 42.4% return over the past month. This could indicate growing investor confidence in the company's pipeline, particularly its lead product detalimogene voraplasmid.
2. Analysts have set a fair value target of $32 for enGene's stock, significantly higher than its current trading price. This suggests potential upside if the company's clinical trials and commercialization efforts prove successful.
These insights are just a sample of the valuable information available through InvestingPro. Subscribers can access over 10 additional tips for enGene, offering a more comprehensive analysis to inform investment decisions in this dynamic biotechnology sector.
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