Eledon Pharmaceuticals (NASDAQ: ELDN) completed a $57.5 million underwritten public offering of common stock and pre‑funded warrants, a capital infusion that extends the company’s cash runway through the second quarter of 2027.
The financing follows the company’s Phase 2 BESTOW trial, which demonstrated a favorable safety and tolerability profile for tegoprubart in kidney transplantation. While the trial met key secondary endpoints and showed a mean eGFR of 69 mL/min/1.73 m² at 12 months, it missed its primary efficacy endpoint. The company has therefore decided to proceed to a Phase 3 program, leveraging the safety data to support regulatory discussions.
Eledon’s clinical portfolio is diversified beyond kidney transplantation. Ongoing studies include islet‑cell transplantation for type 1 diabetes, xenotransplantation procedures, and early‑phase work in amyotrophic lateral sclerosis. Preliminary results in islet‑cell recipients have shown insulin independence in a subset of patients, adding a potential new therapeutic indication for tegoprubart.
CEO David‑Alexandre C. Gros said the financing “provides the liquidity needed to advance our kidney transplant program into Phase 3 and to support the expansion of our clinical portfolio.” He added that the company remains focused on regulatory engagement and on positioning tegoprubart as a safer alternative to calcineurin inhibitors.
Market reaction to the announcement was positive, driven by the capital raise and the continued emphasis on tegoprubart’s safety profile. The earlier November 2025 market downturn, which followed the trial’s missed primary endpoint, was largely attributed to investor concern over the efficacy gap, despite the safety gains. The current financing signals renewed confidence in the company’s strategy and its ability to sustain development momentum.
The $57.5 million raise is part of Eledon’s ongoing capital‑raising strategy, which has included a $50 million PIPE in May 2024, an $85 million offering in October 2024, and a $185 million private placement in May 2023. The new funds will support the Phase 3 trial, regulatory submissions, and continued investment in the company’s diversified pipeline, positioning Eledon to pursue partnership or licensing opportunities as it moves toward a pivotal study.
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