Eledon Pharmaceuticals priced a $50 million underwritten public offering on November 12, 2025, issuing 15,152,485 shares of common stock at $1.65 each and pre‑funded warrants covering up to 15,151,515 shares at $1.649 per warrant with an exercise price of $0.001. The underwriters, Leerink Partners and Cantor, retain a 30‑day option to purchase an additional 4,545,600 shares at the same price, and the transaction is expected to close on or about November 13, 2025.
The company will use the net proceeds to advance its lead asset, tegoprubart, and other pipeline programs, while also supporting general corporate purposes. Eledon reported $124.9 million in cash, cash equivalents, and short‑term investments as of March 31, 2025, a decline from $140.2 million at December 31, 2024 but an increase from $107.6 million at June 30, 2025. The new capital is expected to extend the company’s cash runway and sustain momentum in kidney transplant and ALS initiatives, where tegoprubart has shown encouraging Phase 2 BESTOW trial results.
The offering will increase the number of outstanding shares, raising dilution concerns among investors. Market reaction has been negative, reflecting typical investor caution around equity issuances that dilute existing ownership. The company’s share count will rise if the underwriters’ option is exercised, and the dilution impact is a key factor in the market’s assessment of the transaction.
CEO David‑Alexandre C. Gros emphasized the strategic importance of the funding, noting that the company has achieved all key milestones to date and is advancing tegoprubart in kidney, islet cell, liver allotransplantation, and xenotransplantation. He highlighted the positive data presented at the World Transplant Congress, underscoring tegoprubart’s potential to improve long‑term transplant outcomes while reducing the toxic side effects of current immunosuppressants.
Analysts expect Eledon to report a Q3 2025 earnings per share of –$0.22. The company’s recent Q2 2025 EPS of –$0.13 beat expectations of –$0.23, a beat of $0.10, driven by disciplined cost management amid ongoing clinical development expenditures. The Q3 consensus reflects continued investment in clinical trials and the anticipated dilution from the new offering.
Eledon has a history of raising capital through multiple offerings, including an $85 million oversubscribed offering in October 2024, a $185 million private placement in May 2023, and a $50 million private placement in Q2 2024. The company has also restated financial statements in the past due to accounting reclassifications related to warrant liabilities, indicating a complex financial reporting environment.
The $50 million public offering represents a critical infusion of capital for a clinical‑stage biotech that has yet to generate product sales. By securing additional funds, Eledon positions itself to advance tegoprubart into Phase 3, maintain its research pipeline, and navigate the competitive landscape of transplantation and immunosuppression.
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