Denali Therapeutics priced a $200 million underwritten public offering of 9,142,857 shares of common stock at $17.50 per share, accompanied by pre‑funded warrants to purchase 2,285,714 shares at $17.49 each. The offering, which includes a 30‑day option for underwriters to buy up to 1,714,285 additional shares, is expected to close on December 11, 2025.
The pricing represents a discount to the company’s trading price of $19.66, a common practice to attract investors while providing capital. The underwriters—Goldman Sachs, J.P. Morgan, Morgan Stanley, and Jefferies—are co‑managed by H.C. Wainwright and B. Riley, underscoring the transaction’s scale and market confidence.
Proceeds will fund Denali’s proprietary Transport Vehicle platform and its lead candidate, DNL310, an enzyme replacement therapy for Hunter syndrome. The company has advanced DNL310 to a Biologics License Application filing, with a PDUFA date extended to April 5, 2026. The capital raise will support ongoing clinical development, manufacturing scale‑up, and eventual commercialization of DNL310.
Management highlighted the strategic importance of the platform. CEO Ryan Watts said the FDA’s priority review of the BLA and accelerated approval path for DNL310 underscore the potential of the Transport Vehicle platform to create a new class of blood‑brain‑barrier‑crossing therapeutics. Chief Medical Officer Carole Ho added that collaboration with CDER on cerebrospinal fluid biomarkers is a significant step toward accelerating development.
The offering follows a period of significant R&D investment, with Denali reporting net losses and high R&D expenses. The new capital will extend the company’s cash runway, allowing continued investment in its pipeline while mitigating the risk of funding gaps that could delay regulatory milestones.
Investors have responded cautiously, noting the dilution potential and the discount pricing. The market reaction has been tempered by concerns over the impact of new shares on earnings per share, despite the company’s strong pipeline and regulatory progress.
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