MetaVia secures $10 million in private placement

CAMBRIDGE, Mass. - MetaVia Inc. (NASDAQ:MTVA), a biotech firm specializing in cardiometabolic disease treatments, has secured approximately $10 million through a private placement. The company, currently valued at $6.14 million, plans to direct the net proceeds towards working capital and the continued clinical development of its obesity treatment, DA-1726. According to InvestingPro data, MetaVia has been quickly burning through cash, with the stock down over 82% in the past year.

The private placement includes the sale of roughly 9.5 million shares of common stock at $0.71 each, alongside over 4.6 million pre-funded warrants priced at $0.709 per warrant. These warrants, exercisable at $0.001 each, will become active upon stockholder approval for the associated common stock issuance. The transaction, compliant with Nasdaq’s at-the-market pricing rules, is anticipated to close around May 12, 2025, pending standard closing conditions. InvestingPro analysis indicates the company’s shares are currently trading near their 52-week low of $0.65, with an overall Financial Health Score rated as WEAK.

The securities, which include common stock and the shares underlying the pre-funded warrants, are offered to select institutional accredited investors. These securities are not registered under the Securities Act or state securities laws, thus are restricted from public offering in the U.S. without SEC registration or an exemption. MetaVia has committed to registering these securities for resale and obtaining stockholder consent for the common stock related to the pre-funded warrants.

Ladenburg Thalmann & Co. Inc. is the exclusive agent for this offering, which is not to be construed as a public solicitation or offer of these securities in any jurisdiction where such actions would be illegal before registration or qualification under the securities laws of that jurisdiction.

MetaVia is advancing DA-1726, an oxyntomodulin analogue designed to treat obesity by reducing food intake and increasing energy expenditure. Additionally, the company is developing DA-1241 for Metabolic Dysfunction-Associated Steatohepatitis (MASH), which has shown promise in pre-clinical studies and a Phase 2a clinical trial. With current market conditions, InvestingPro analysis suggests the stock is undervalued, though analysts don’t expect profitability this year. InvestingPro subscribers have access to 13 additional key insights about MetaVia’s financial outlook.

This news is based on a press release statement from MetaVia Inc.

In other recent news, MetaVia Inc. has reported promising results from its clinical trials concerning two of its drug candidates. The company’s Phase 2a trial for DA-1241, a treatment for Metabolic Dysfunction-Associated Steatohepatitis (MASH), demonstrated positive outcomes, including reduced liver inflammation and improved glucose control. This trial, which will be highlighted at the European Association for the Study of the Liver Congress, suggests potential new treatment avenues for MASH, a condition lacking FDA-approved therapies. Concurrently, MetaVia’s Phase 1 trial of DA-1726, an obesity drug candidate, showed significant body weight reduction, with a maximum decrease of 6.3% in participants. The study indicated that DA-1726, which targets both GLP-1 and glucagon receptors, is safe and well-tolerated at higher doses, with no significant cardiovascular effects. MetaVia plans to proceed with further trials to explore DA-1726’s efficacy in patients who discontinued other treatments due to tolerability issues. The company also noted the exercise of pre-funded warrants for 1,430,000 shares of common stock, reflecting confidence in DA-1726’s potential. These developments underscore MetaVia’s ongoing efforts to advance treatments for cardiometabolic diseases.

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