Immunic Inc. prices $65 million public offering

NEW YORK - Immunic, Inc. (NASDAQ: IMUX), a biotechnology firm currently trading at $0.91 with a market capitalization of $87.21 million, has announced the pricing of its underwritten public offering, which includes pre-funded and series A and B warrants to purchase shares of common stock. According to InvestingPro analysis, the company appears to be fairly valued at current levels. The offering, priced at $0.7499 for each combined warrant set, is expected to generate initial gross proceeds of approximately $65 million, excluding underwriting discounts and commissions, and offering expenses. This capital raise comes at a crucial time, as InvestingPro data reveals the company is quickly burning through cash, with an EBITDA of -$100.84 million in the last twelve months.

The pre-funded warrants are immediately exercisable, while the series A warrants can be exercised any time before December 31, 2025. The series B warrants will become exercisable starting October 1, 2025, or earlier if certain conditions are met, and will remain valid for five years from the date of issuance.

Immunic anticipates that if all series A and B warrants are exercised in full for cash, it could receive up to an additional $130 million in gross proceeds. The offering is slated to close around June 3, 2025, subject to customary closing conditions.

The net proceeds from the offering are intended to support clinical trials, operations, and other general corporate purposes. Leerink Partners is the sole bookrunner for the offering, with B. Riley Securities and Brookline Capital Markets as co-managers, and William Blair & Company serving as the financial advisor to Immunic.

The offering is made under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on November 22, 2023, and effective as of May 31, 2024. The final prospectus supplement relating to the offering will be available on the SEC’s website.

Immunic is focused on developing small molecule therapies for chronic inflammatory and autoimmune diseases. Its lead program, vidofludimus calcium (IMU-838), is in phase 3 trials for relapsing multiple sclerosis, with top-line data expected by the end of 2026. Analyst price targets range from $5 to $28, reflecting diverse views on the company’s potential. For deeper insights into Immunic’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence. The company also has other candidates targeting gastrointestinal diseases in various stages of development.

This article is based on a press release statement.

In other recent news, Immunic, Inc. has announced a public offering of warrants aimed at funding its clinical trials and general corporate activities. The offering includes pre-funded warrants and Series A and B warrants, with expiration dates extending to December 31, 2025, and five years post-issuance, respectively. Additionally, Immunic has launched a registered direct offering of common stock, pricing 5,666,667 shares at $0.90 each, expecting to raise approximately $5.1 million. The proceeds from this offering will also support clinical trials and operational needs.

In a significant development, Immunic reported positive phase 2 trial results for vidofludimus calcium in progressive multiple sclerosis, showing a reduction in the risk of disability worsening. This drug candidate also demonstrated a reduction in thalamic brain volume loss, an important marker for clinical disability progression. Meanwhile, William Blair has initiated coverage on Immunic with an Outperform rating, citing the potential of vidofludimus calcium in treating relapse-remitting multiple sclerosis. The analyst highlighted the drug’s safety profile and its potential to disrupt the oral RMS therapy market. These recent developments underscore Immunic’s ongoing efforts and progress in its drug development initiatives.

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