Vivani Medical secures $8.25 million for drug implant development

Published 27/03/2025, 12:42
Vivani Medical secures $8.25 million for drug implant development

ALAMEDA, Calif. - Vivani Medical, Inc. (NASDAQ: VANI), a clinical-stage biopharmaceutical company with a market capitalization of $66.34 million, has announced a private placement of 7,366,071 shares at $1.12 each, generating approximately $8.25 million. The transaction is aimed at bolstering the company’s financial position through the second quarter of 2026. According to InvestingPro analysis, the company maintains a FAIR financial health score despite currently burning through cash.

The funds are earmarked for the expedited development of NPM-139, Vivani’s semaglutide implant designed for chronic weight management, which may be administered once or twice yearly. The capital will also support the continued development of NPM-115, a similar GLP-1 (exenatide) implant with a twice-yearly administration schedule. Wall Street analysts maintain optimistic price targets ranging from $4 to $8 per share, reflecting potential upside for the development programs. Discover more detailed analyst insights with InvestingPro.

The private placement was negotiated at market prices according to Nasdaq rules and regulations and involves multiple closing dates. The investor in this agreement is an entity owned by Gregg Williams, Chairman of Vivani’s board. These securities have not been registered under the Securities Act of 1933 and are therefore subject to restrictions on their sale in the U.S.

Vivani leverages its proprietary NanoPortal™ platform to create drug implants that release medication over extended periods, potentially improving patient adherence and tolerance. With a healthy current ratio of 3.41, the company maintains strong short-term liquidity to support its development programs. The company’s lead program, NPM-115, targets chronic weight management, while NPM-139, the semaglutide implant, has the added prospect of annual administration. Additionally, NPM-119 is being developed for type 2 diabetes treatment.

Medication non-adherence is a significant healthcare issue, with an estimated 50% of patients not taking their medication as prescribed, leading to substantial avoidable costs and preventable deaths annually in the U.S. With a beta of 3.5, Vivani’s stock shows higher volatility than the broader market, reflecting both risks and opportunities in its innovative approach. The company’s long-acting GLP-1 implants could offer a competitive therapeutic option in a landscape with over 50 clinical-stage molecular entities.

The information disclosed in this article is based on a press release statement from Vivani Medical, Inc.

In other recent news, Vivani Medical, Inc. has reported promising preclinical results for its NPM-139 semaglutide implant, designed for chronic weight management. The study, conducted in healthy rats, showed a significant reduction in body weight over a 91-day period. The implant’s potential for once or twice-yearly dosing could improve medication adherence and tolerability. Vivani’s ongoing LIBERATE-1 clinical trial for the NPM-115 exenatide implant has achieved full enrollment, indicating strong interest in the six-month subdermal implant. Top-line results from this trial are anticipated in mid-2025. H.C. Wainwright has maintained a Buy rating on Vivani Medical, with a price target of $4, following the announcement of positive preclinical data. The firm also noted Vivani’s plans to spin off its Cortigent division, which will focus on developing brain implant devices. The spin-off is expected to be finalized by the third quarter of 2025, with Vivani stockholders receiving shares in the new entity.

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