REGENXBIO secures $150 million to extend cash runway

ROCKVILLE, MD - Biotechnology firm REGENXBIO Inc. (NASDAQ: RGNX), currently valued at $488 million in market capitalization, has finalized a royalty bond agreement with Healthcare Royalty (HCRx), securing $150 million at closing and potentially up to $250 million in total. This financial move is aimed at extending the company’s cash runway into early 2027, as announced today. According to InvestingPro data, REGENXBIO maintains a strong liquidity position with a current ratio of 2.93, though the company has been quickly burning through cash.

The agreement involves monetizing anticipated royalties and milestone payments from specific assets. It allows REGENXBIO to receive immediate and future capital without diluting shareholder equity. The company has received $150 million upfront and may receive an additional $100 million based on certain conditions being met by April 30, 2027. This financing comes at a crucial time, as InvestingPro analysis shows the company achieved impressive revenue growth of 80.7% over the last twelve months, despite not yet achieving profitability.

Mitchell Chan, REGENXBIO’s Chief Financial Officer, highlighted the strategic nature of the financing, emphasizing its role in supporting the company’s late-stage activities. The funds will aid in the potential FDA approval of RGX-121 for MPS II, the submission of a Biologics License Application (BLA) for RGX-202 for Duchenne muscular dystrophy, and pivotal studies for ABBV-RGX-314 for wet AMD.

Clarke Futch, HCRx’s Chairman and CEO, recognized the value in REGENXBIO’s portfolio and expressed commitment to providing innovative capital solutions.

The terms of the agreement grant HCRx rights to certain royalty and milestone payments, including those from ZOLGENSMA® for Spinal Muscular Atrophy. HCRx will also receive warrants to purchase company shares at a premium.

REGENXBIO retains potential non-dilutive funding opportunities not included in this deal, such as the sale of a Priority Review Voucher for RGX-121 and milestones from partnerships with AbbVie and Nippon Shinyaku.

Legal advisement for the transaction was provided by Covington & Burling LLP for REGENXBIO and Morgan, Lewis & Bockius LLP for HCRx.

This financial development is based on a press release statement and the information is presented without endorsement of the company’s claims.

In other recent news, Regenxbio Inc. reported a significant miss in its first-quarter 2025 earnings, with earnings per share at $0.12 compared to the forecasted $0.48, and revenue at $89 million, falling short of the projected $107.85 million. Despite these financial misses, the company received a boost as the U.S. Food and Drug Administration (FDA) accepted its Biologics License Application (BLA) for RGX-121, a gene therapy for Mucopolysaccharidosis II, under priority review. The Prescription Drug User Fee Act (PDUFA) target action date is set for November 9, 2025, marking a significant milestone for Regenxbio.

Analysts from Stifel have maintained a Buy rating on Regenxbio, with a price target of $40.00, reflecting confidence in the company’s transition from development to commercialization. The strategic partnership with Nippon Shinyaku, announced in January 2025, positions NS Pharma, Inc. to lead the U.S. commercialization of RGX-121 upon FDA approval. Regenxbio also retains rights to any proceeds from a potential Priority Review Voucher sale, further supporting its financial position.

The company’s pipeline shows promise with advancements in RGX-202 for Duchenne muscular dystrophy, where over half of the required participants are enrolled in Phase 3 trials. Additionally, Regenxbio’s partner AbbVie is progressing with Phase 3 trials of ABBV-RGX-314 for wet Age-Related Macular Degeneration, with completion targeted for 2025. These developments underscore Regenxbio’s strategic positioning in the gene therapy market as it prepares for potential commercial launches.

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