Palisade Bio closes $138 million public offering for IBD drug development

Published 02/10/2025, 21:14
Palisade Bio closes $138 million public offering for IBD drug development

CARLSBAD, CA - Palisade Bio, Inc. (NASDAQ:PALI) announced Thursday the closing of its previously announced underwritten public offering, raising approximately $138 million in gross proceeds before deducting underwriting discounts, commissions, and other offering expenses. The announcement comes as the stock shows remarkable momentum, with InvestingPro data revealing a 69% surge in the past week and a 96% gain over six months.

The offering, which included the full exercise of the underwriter’s over-allotment option, consisted of 197,154,844 shares of common stock (or common stock equivalents) at a public offering price of $0.70 per share.

Led by B Group Capital and Columbia Threadneedle Investments, the offering saw participation from multiple investment firms including Adage Capital Partners LP, Perceptive Advisors, RA Capital Management, and several other healthcare-focused investors.

Palisade Bio plans to use the proceeds to support the upcoming Phase 2 clinical development program for PALI-2108, its ileocolonic-targeted PDE4 B/D inhibitor being developed for ulcerative colitis.

"We are very pleased to have the support of such high-quality, experienced investors who share our vision for the company," said J.D. Finley, CEO of Palisade Bio, according to the press release statement.

Ladenburg Thalmann & Co. Inc. served as the sole book-running manager for the offering, which was made pursuant to a registration statement declared effective by the Securities and Exchange Commission on September 30, 2025.

Palisade Bio is a clinical-stage biopharmaceutical company focused on developing therapeutics for patients with autoimmune, inflammatory, and fibrotic diseases. The company maintains a strong balance sheet with more cash than debt, though InvestingPro analysis indicates challenging profitability metrics with an EBITDA of -$12.12 million in the last twelve months. InvestingPro subscribers have access to 10+ additional financial insights and real-time analysis tools.

In other recent news, Palisade Bio has priced a public offering of 171,440,559 shares at $0.70 per share, aiming to raise approximately $120 million in gross proceeds. This move comes as the company continues to focus on developing therapeutics for autoimmune, inflammatory, and fibrotic diseases. Additionally, Palisade Bio has faced challenges with its special shareholder meeting, which was adjourned due to a lack of quorum. The meeting is set to reconvene on October 10, 2025, with no changes to the proposals being voted on. Meanwhile, Palisade Bio has reported promising clinical data for its drug PALI-2108, showing positive responses in Phase 1b testing for ulcerative colitis. All five patients in the study responded to the treatment, with two achieving clinical remission after seven days. The study also demonstrated significant reductions in various clinical and histologic measures. These developments highlight the company’s ongoing efforts in advancing its clinical programs while managing shareholder engagement.

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