iBio announces public offering to fund cardiometabolic programs

SAN DIEGO - iBio, Inc. (NASDAQ:IBIO), an AI-driven developer of antibody therapies with a market capitalization of $11.83 million, announced Monday it has commenced an underwritten public offering of pre-funded warrants to purchase shares of its common stock and accompanying Series G warrants. The company’s stock has surged 26% in the past week, according to InvestingPro data.

The offering includes Series G warrants representing rights to purchase fractions of common stock shares or pre-funded warrants, along with Series H warrants. All securities in the proposed offering will be offered by iBio.

The company plans to use net proceeds to advance its preclinical cardiometabolic programs, including IBIO-610, a myostatin and activin A bispecific, and IBIO-600 programs, through key development milestones. This funding is crucial as InvestingPro data shows the company’s negative EBITDA of -$16.02 million and rapid cash burn. Funds will also support progress on other preclinical pipeline assets and general corporate purposes.

Leerink Partners is serving as lead bookrunning manager, with LifeSci Capital and Oppenheimer & Co. acting as bookrunning managers. Brookline Capital Markets is acting as financial advisor to iBio.

The offering is being made pursuant to a shelf registration statement on Form S-3 filed with the SEC on July 3, 2024, which became effective on August 6, 2024.

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

The company focuses on developing biopharmaceuticals for cardiometabolic diseases, obesity, cancer and other conditions using AI and computational biology approaches. InvestingPro analysis indicates a Fair overall financial health score, with 12 additional key insights available to subscribers.

This announcement is based on a press release statement from iBio.

In other recent news, iBio, Inc. has been actively advancing its research in obesity treatment, with promising developments in its antibody programs. The company reported preclinical data indicating that its engineered amylin receptor agonist antibody significantly reduced acute food intake in a mouse model of obesity. This advancement is part of a collaboration with AstralBio, focusing on selective activation of the amylin receptor. Additionally, iBio has initiated a non-human primate study for its Activin E antibody candidate, IBIO-610, to assess its effects on fat reduction and body composition, with results anticipated in the early fourth quarter.

iBio is also preparing to host a conference call to discuss these advancements in obesity and cardiometabolic disease treatments. During the call, CEO Martin Brenner will outline the company’s strategy, including details about its long-acting Myostatin antibody, IBIO-600. In regulatory news, iBio received a notice from Nasdaq regarding a minimum bid price deficiency, though this does not immediately affect the stock’s listing. The company has until January 26, 2026, to regain compliance with Nasdaq’s requirements.

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