The company completed a $75 million equity offering, selling 10,815,000 shares of common stock and 5,407,500 warrants to purchase additional shares at a combined price of $6.14 per unit. The transaction includes pre‑funded warrants for certain investors and is expected to raise approximately $75 million in gross proceeds.
The raise comes as the company reports a trailing‑12‑month EBITDA of $87.9 million and a projected FY2025 earnings per share of –$6.83. The high cash burn rate has forced the company to secure additional capital to sustain its clinical pipeline and day‑to‑day operations.
The capital will support the ARCUS platform‑based gene‑editing programs, notably PBGENE‑HBV, which has shown promising Phase 1 data, and PBGENE‑DMD, for which an IND filing is expected by year‑end. CEO Michael Amoroso emphasized that the funding will extend the company’s runway into the second half of 2027, giving the team time to reach key milestones.
Precision BioSciences operates in a highly competitive gene‑editing market, where peers have raised larger sums. The company’s valuation of roughly $80 million at the time of the offering reflects its speculative nature, and its Altman Z‑Score of –9.99 signals high bankruptcy risk. Despite these challenges, the company’s proprietary ARCUS platform offers a smaller, highly specific editing tool that could differentiate it in the market.
With a current ratio of 3.45 and a debt‑to‑equity ratio of 1.75, the company maintains short‑term liquidity but carries significant leverage. The negative operating and net margins, along with a three‑year revenue decline of 44.7%, underscore the need for continued investment. Management’s guidance that the cash runway will last until 2027 signals confidence in the pipeline but also highlights the ongoing need for capital to bridge the gap to profitability.
The $75 million equity offering is a critical infusion for a clinical‑stage biotechnology firm facing substantial financial headwinds. While the capital will support the company’s ambitious gene‑editing agenda, investors will watch how the funds are deployed to achieve the next clinical milestones and to improve the company’s financial trajectory.
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