REGENXBIO plans a $100M stock offering with a 15% overallotment option after shares fell 60% in the past year. The gene-therapy company had $359M in cash at end of June.
REGENXBIO (RGNX) said Thursday it will offer and sell $100 million of common stock in an underwritten public offering. The deal includes a 15% overallotment option for underwriters, meaning the total could reach $115 million if fully exercised.
Shares fell 16% in after-hours trading to $5.21, extending a slide that has left the stock down roughly 60% over the past 12 months. The gene-therapy company had $359 million in cash at the end of June, tamping down near-term urgency for new funds. The biotech sector has seen multiple ATM offerings this quarter as companies front-run any volatility tied to the election cycle or interest-rate decisions, bankers said.
Cantor Fitzgerald is the sole bookrunner. Jefferies and JonesTrading are co-managers. The filing did not set a price range for the offering.
The $100 million raise comes as REGENXBIO advances its pipeline of AAV-based gene therapies, including a Phase III trial for wet age-related macular degeneration and a Phase II study for Hunter syndrome. The company's lead candidate, RGX-314, is being developed with AbbVie for retinal diseases. A Phase III readout for the wet AMD program is expected in the first half of 2025.
At the current cash burn rate of roughly $90 million per quarter, the new funds would extend the runway into late 2026, giving the company time to reach key clinical milestones without a distressed financing. The stock's 60% decline over the past year reflects broader sector headwinds and investor caution around gene-therapy development timelines, rather than company-specific setbacks.
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