Fractyl Health prices $60 million common stock offering at $1 per share

BURLINGTON, Mass. - Metabolic therapeutics company Fractyl Health, Inc. (NASDAQ:GUTS) has priced an underwritten offering of 60 million shares of its common stock at $1.00 per share, according to a press release statement issued Friday. The offering price sits just below the current trading price of $1.01, with the stock having declined over 60% in the past year, according to InvestingPro data.

The offering is expected to generate approximately $60 million in gross proceeds for the company, before deducting underwriting discounts, commissions and other offering expenses. The transaction is scheduled to close on or about September 29, 2025, subject to customary closing conditions.

BofA Securities and Evercore ISI are serving as joint book-running managers for the offering, while Ladenburg Thalmann is acting as lead manager.

Fractyl Health focuses on developing treatments for metabolic diseases, particularly obesity and type 2 diabetes. The company aims to create therapies that address the root causes of these conditions rather than just managing symptoms.

The Burlington-based firm has established an intellectual property portfolio that includes 33 granted U.S. patents and approximately 40 pending U.S. applications, along with various foreign patents and applications.

A shelf registration statement for the securities was filed with the Securities and Exchange Commission on March 3, 2025, and declared effective on March 18, 2025. A final prospectus supplement and accompanying prospectus will be filed with the SEC.

The company did not specify how it plans to use the proceeds from the offering in the announcement.

In other recent news, Fractyl Health Inc. reported its second-quarter 2025 earnings, revealing a substantial increase in research and development expenses, leading to a widened net loss compared to the previous year. Despite these financial challenges, the company has managed to extend its cash runway into 2026. Additionally, Fractyl Health announced promising results from its Revita procedure, which has shown effectiveness in preventing weight regain after patients discontinue GLP-1 medications. In another development, H.C. Wainwright initiated coverage on Fractyl Health with a Buy rating and a $9.00 price target, citing the company’s transformative approaches to addressing obesity and Type 2 diabetes. Meanwhile, Canaccord Genuity adjusted its price target for Fractyl Health to $6.00 from $12.00, while maintaining a Buy rating, following the company’s recent financial report. In terms of corporate governance, Fractyl Health appointed Christopher Thompson, M.D., and Ian Sheffield as new directors, with Sheffield also joining the audit committee. These appointments come alongside a board resignation, reflecting ongoing changes in the company’s leadership structure.

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