WATERTOWN, Mass. - Acrivon Therapeutics, Inc. (NASDAQ:ACRV), a biopharmaceutical company engaged in developing precision oncology medicines, has announced a private investment in public equity (PIPE) financing agreement.
The company will issue 8,235,000 shares of common stock at $8.50 each and pre-funded warrants for 7,060,000 shares at $8.499 per warrant, with proceeds expected to be around $130 million before fees and expenses.
The financing, which is set to close on April 11, 2024, subject to customary conditions, was oversubscribed, indicating strong investor interest. This round is led by a new U.S.-based healthcare and life sciences investor, alongside other new and existing investors such as RA Capital Management, Perceptive Advisors, and Sands Capital.
Acrivon's CEO, Peter Blume-Jensen, expressed gratitude for the investors' confidence and support, which will help further the development of the company's clinical and preclinical pipelines. These include the ACR-368, currently in Phase 2 trials, and the ACR-2316, a novel WEE1/PKMYT1 inhibitor, as well as an undisclosed cell cycle regulatory program.
The generated funds, along with existing cash reserves, are expected to support Acrivon's operations into the second half of 2026. The company aims to expand the applications of its Acrivon Predictive Precision Proteomics (AP3) platform and leverage artificial intelligence and machine learning with its proprietary data sets for broader research and development.
Acrivon's AP3 platform is designed for the unbiased measurement of tumor cell protein signaling and drug resistance, which assists in optimizing drug design and identifying patient-specific treatment strategies. The company has received Fast Track and Breakthrough Device designations from the FDA for its ACR-368 OncoSignature test in identifying ovarian cancer patients likely to benefit from ACR-368 therapy.
The information provided is based on a press release statement from Acrivon Therapeutics.
InvestingPro Insights
Acrivon Therapeutics' recent PIPE financing has attracted significant attention, and with the deal set to close soon, investors are keenly monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Acrivon Therapeutics has a market capitalization of $133.78 million. Despite the company's efforts in advancing its oncology pipeline, it shows a negative P/E ratio of -2.61, reflecting that it is not currently profitable.
The InvestingPro data also reveals a concerning EBITDA growth rate, showing a substantial decrease of -106.13% over the last twelve months as of Q4 2023. This aligns with one of the InvestingPro Tips that Acrivon is quickly burning through cash, which is a critical factor for investors to consider, especially in the biopharmaceutical sector where R&D and clinical trials can be capital intensive.
Nevertheless, Acrivon has demonstrated strong short-term market performance with a one-month price total return of 19.39% and a three-month return of 29.32%. This could suggest investor optimism about the company's potential, despite the absence of profitability in the last twelve months. Moreover, Acrivon holds more cash than debt on its balance sheet, which is an important InvestingPro Tip indicating the company's ability to fund its operations in the near term without the immediate need for additional financing.
For investors looking for a deeper dive into Acrivon Therapeutics' financials and future prospects, there are additional InvestingPro Tips available. These include insights on earnings revisions, profitability expectations, and stock performance. To access these valuable tips and make informed investment decisions, visit InvestingPro and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 11 more tips listed on InvestingPro, investors can gain a comprehensive understanding of Acrivon's market position and future outlook.
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