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Entera Bio Secures $275 Million in Private Placement to Fund Osteoporosis Drug Trial
Summary
The biopharmaceutical company announced an oversubscribed private placement led by BVF Partners L.P., with proceeds intended to fund a Phase 3 trial for its oral osteoporosis treatment and extend its cash runway into 2030.
Shares of Entera Bio Ltd. (NASDAQ: ENTX) jumped sharply on Monday after the company announced a definitive agreement for a $275 million private placement. The financing, led by existing investor BVF Partners L.P., provides significant capital to advance the company's lead drug candidate through late-stage clinical trials.
Details of the Financing
Under the terms of the agreement, Entera will issue 122,961,215 ordinary shares at a purchase price of $2.04 per share. The deal also includes pre-funded warrants to purchase up to an additional 11,842,695 ordinary shares at the same price.
The company noted the placement was oversubscribed and included participation from several new institutional investors, such as Longitude Capital, Vivo Capital, and TCGX. The transaction, priced at-the-market under Nasdaq rules, is expected to close on or about July 28, 2026. As part of the deal, BVF Partners will have the right to designate two directors to Entera’s board.
Use of Proceeds and Strategic Impact
Entera Bio stated the net proceeds will fully fund the Phase 3 registrational studies for its lead product candidate, EB613. EB613 is an oral PTH(1-34) peptide tablet being developed for the treatment of osteoporosis. A portion of the funds will also be used to advance EB612, a treatment candidate for hypoparathyroidism, into Phase 1 development.
AdFor investors, the capital raise is a significant milestone. The company projects that the proceeds, combined with existing cash, will extend its operational cash runway into 2030, removing near-term financing overhang and providing a clear path to complete its key clinical programs.
Market Reaction
Investors responded positively to the announcement, which secures the long-term funding for Entera's pivotal trial. In Monday's trading, shares of ENTX surged by as much as 44.5%.
Leerink Partners served as the lead placement agent for the transaction. The securities were offered in a private placement and have not been registered under the Securities Act of 1933, as is standard for such offerings.
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