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Net proceeds from the financing are slated to fund a late-stage colon cancer clinical trial and potentially provide cash runway through 2031.
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Agenus is also shifting its main drug combination to treat high-risk, earlier-stage colon cancer before surgery.
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The condition represents a potential U.S. market opportunity of more than $7 billion annually, Agenus said.
Agenus (AGEN) shares jumped 100% on Monday after the company announced an oversubscribed private placement of up to $340 million and a strategic pivot to prioritize its lead program in earlier-stage colon cancer.
The stock is now on track for its best day ever, if gains hold.
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Financing Details
Agenus is raising up to $340 million from investors through a private deal. It expects to receive about $85 million soon, with the potential for another $255 million later if investors buy more shares.
Net proceeds from the financing are slated to fund a late-stage colon cancer clinical trial and potentially provide cash runway through 2031.
The company had just $35.0 million in cash and cash equivalents as of March 31.
New Pipeline Focus
Agenus is shifting its main drug combination (botensilimab plus balstilimab) to treat high-risk earlier-stage colon cancer before surgery, the company said. It now plans a large, late-stage study in the patient population, with the first patient expected to be dosed in the first quarter of 2027. The condition represents a potential U.S. market opportunity of more than $7 billion annually, Agenus said.
At the same time, Agenus is stopping financial support for a different study in patients with more advanced colon cancer. Earlier, smaller studies of the drug combination showed promising results, with many patients responding well to the treatment, it noted.
Expert Takeaway
H.C. Wainwright analyst Emily Bodnar raised the firm’s price target on Agenus to $30 from $23 and kept a ‘Buy’ rating on the shares. H.C. Wainwright views the shift in strategy as favorable, saying there is currently no standard of care in neoadjuvant treatment for the condition. The firm’s new price target represents a potential upside of about 796% from the stock’s last closing price.
On X, the investor commonly referred to as ‘Pharma bro,’ Martin Shkreli wrote, “short $AGEN – PIPE does not change bleak outlook. should trade back to PIPE price.”
How Did AGEN Retail Traders React?
On Stocktwits, retail sentiment around AGEN stock rose from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘normal’ to ‘extremely high’ levels.