Forbion Growth Opportunities Fund I Cooperatief U.A. has acquired 561,797 common shares of enGene Holdings Inc. (NASDAQ:ENGN) in a private placement, according to a recent SEC filing. The shares were purchased at a price of $8.90 each, totaling approximately $4.99 million. This acquisition increases Forbion's direct ownership to 3,032,430 shares. The transaction was conducted under a Subscription Agreement dated October 24, 2024, and completed on October 30, 2024. The shares are held directly by Forbion Cooperatief, with Forbion Growth Management B.V. acting as the sole director, exercising voting and investment power through its investment committee.
In other recent news, biotechnology firm enGene Holdings Inc. has secured approximately $60 million in gross proceeds from a private placement sale. The funding will facilitate the development of its lead product, detalimogene voraplasmid, which is currently under study for high-risk NMIBC patients. Analysts from Leerink Partners, Piper Sandler & Co., Guggenheim Securities, and Wells Fargo Securities served as placement agents for the transaction.
In a recent reshuffling, enGene appointed Joan Connolly as its Chief Technology Officer. The company has also advanced its pivotal study for detalimogene voraplasmid, a treatment for high-risk, Bacillus Calmette-Guérin (BCG)-unresponsive, non-muscle invasive bladder cancer.
In the world of analyst ratings, Leerink Partners adjusted its price target for enGene to $17, maintaining an 'Outperform' rating. Oppenheimer also upheld its 'Outperform' rating and a $30 price target, while Morgan Stanley reaffirmed its 'Overweight' rating with a $40 price target for enGene.
The company announced preliminary results from its LEGEND study for a bladder cancer treatment, detalimogene. The study reported complete response (CR) rates over various timeframes, with 71% at any time, 67% after three months, and 47% at six months.
Lastly, enGene's gene therapy EG-70, currently in clinical trials for treating non-muscle invasive bladder cancer (NMIBC), has garnered attention. Oppenheimer maintained its 'Outperform' rating for enGene, projecting potential due to EG-70's non-viral gene therapy nature and convenience of use.
InvestingPro Insights
Following Forbion Growth Opportunities Fund I Cooperatief U.A.'s significant investment in enGene Holdings Inc. (NASDAQ:ENGN), it's worth examining some key financial metrics that provide context to this transaction.
According to InvestingPro data, enGene Holdings has a market capitalization of $391.31 million, which places it in the small-cap category. This valuation suggests that Forbion's investment of approximately $4.99 million represents a notable stake in the company.
The company's Price to Book ratio stands at 1.68, indicating that the stock is trading above its book value. This metric could be of interest to investors considering the recent private placement at $8.90 per share.
An InvestingPro Tip highlights that enGene's stock price has shown high volatility over the past year. This is evident in the company's price performance metrics, with a striking 35.94% gain over the past month contrasting sharply with a 55.75% decline over the past year. Such volatility may explain why institutional investors like Forbion are seeking opportunities to acquire shares at what they perceive to be attractive prices.
Another relevant InvestingPro Tip notes that analysts have set significantly higher price targets for enGene. The fair value based on analyst targets is $32, substantially higher than the current trading price and the private placement price. This disparity between current price and analyst expectations could have been a factor in Forbion's decision to increase its stake.
For investors interested in a deeper analysis, InvestingPro offers 10 additional tips for enGene Holdings, providing a more comprehensive view of the company's financial health and market position.
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