Rapport delights with US$250m stock sale
Rapport Therapeutics cashed in on investor enthusiasm for its promising epilepsy drug in a US$250m follow-on stock sale.
After one day of public marketing, Goldman Sachs, Jefferies, TD Cowen and Stifel priced 9.6m shares at US$26, a 7.2% discount to Tuesday's closing price of US$28.03 and a 17.4% file-to-offer discount.
The mid-stage biotech sold roughly 20% of share capital, causing its shares to buckle to a closing price of US$22.40 on Wednesday.
Rapport was still riding high after reporting Phase II trial results early Monday that sent its shares soaring nearly 120% to US$31.47.
Over US$480m worth of stock changed hands during the session on four times the normal daily trading volume, generating enough reverse inquiry about a potential stock sale and making confidential marketing unnecessary.
According to the Phase II results, patients with focal onset epilepsy reduced the frequency of their seizures by 78% after taking Rapport's drug and 24% were seizure-free after eight weeks.
Although focal onset epilepsy is a large market, with over 30 approved treatments, there is still an unmet need for new treatments because more than 40% of patients still experience seizures while taking existing medications.
Rapport expects to finish the Phase II trial and discuss the results with the FDA this year, which may support launching a Phase III trial next year. The proceeds add to US$260m of cash held on June 30, extending Rapport's financial runway into mid-2029.