X4 raises US$135m in equity recap
Weeks after raising US$85m via a private placement, X4 Pharmaceuticals secured another US$135m late Tuesday from a stock sale that the cash-strapped biotech is using to fund a crucial Phase III trial.
After an earlier wall-cross, Leerink Partners, Stifel and Guggenheim Securities priced 46.6m shares at US$2.90, within the US$2.85–$2.95 target and a 5.8% discount to the previous closing price of US$3.08.
This was a full equity reset in which the biotech sold nearly 40% of itself.
Not surprisingly, the banks took the precaution of wall-crossing select investors, supporting an upsize from the original US$125m funding target.
Select investors were given the option of purchasing pre-funded warrants to help manage their holdings. The offering ended up as mostly common stock with only 700,00 pre-funded warrants sold, or 1.5% of the deal.
In August, X4 sold 59.9m shares and pre-funded warrants at US$1.41 in an upsized private placement led by Coastlands Capital with support from existing backers Bain Capital and New Enterprise Associates.
The private placement added to US$24.2m raised from the sale of 7.8m shares under an ATM programme.
X4 is using the money to fund a Phase III trial for a drug to treat patients with a blood deficiency that exposes them to infections. The same drug was approved for patients with an ultra-rare disease called WHIM syndrome.
To save cash, in September X4 paused the WHIM commercial launch and cut half its employees.
X4 expects the Phase III trial to be fully enrolled in the coming weeks and hopes to complete the trial in the second half of 2026.
Between the proceeds from this offering and other recent financing/cost-cutting activities, X4 should have enough to carry itself to the finish line.