Financing included participation from top-tier
healthcare funds
Proceeds expected to fund Company into the
second half of 2027
Company to host webcast to review interim
clinical data from Phase 1/2 trial of NGN-401 gene therapy for Rett
syndrome on November 11 at 4:30 p.m. ET
Neurogene Inc. (Nasdaq: NGNE), a clinical-stage company founded
to bring life-changing genetic medicines to patients and families
affected by rare neurological diseases, today announced that it has
entered into a securities purchase agreement for a private
investment in public equity (“PIPE”) financing that is expected to
result in gross proceeds of approximately $200 million to
Neurogene, before placement agent fees and offering expenses. The
oversubscribed PIPE financing included participation from a
U.S.-based healthcare focused investor, RTW Investments, Casdin
Capital, EcoR1 Capital, Redmile Group, Great Point Partners, LLC,
Commodore Capital and Samsara BioCapital.
Pursuant to the terms of the securities purchase agreement,
Neurogene is selling an aggregate of (i) 1,835,000 shares of its
common stock (“Common Stock”) at a purchase price of $50.00 per
share and (ii) pre-funded warrants to purchase 2,165,042 shares of
Common Stock at a price of $49.999 per pre-funded warrant. The
pre-funded warrants have an exercise price of $0.001 per share.
Following the transaction, there will be approximately 21.0 million
shares of common stock outstanding (assuming the exercise in full
of all pre-funded warrants). The PIPE financing is expected to
close on or about November 5, 2024, subject to satisfaction of
customary closing conditions.
Neurogene expects the net proceeds from the PIPE financing along
with its existing cash and cash equivalents will provide runway
into the second half of 2027. Neurogene anticipates the funding
will allow for the completion of enrollment of a future
registrational study for NGN-401 for Rett syndrome, CMC scale-up to
support NGN-401 registrational activities, further development of
its EXACT™ gene therapy pipeline and other general corporate
purposes.
Neurogene will host a webcast to review the safety data from the
low- and high-dose cohorts and interim efficacy data from the
low-dose cohort of the NGN-401 Phase 1/2 trial on November 11, 2024
at 4:30 p.m. ET.
TD Cowen, Leerink Partners, Stifel and William Blair are acting
as joint placement agents for the private placement.
The offer and sale of the foregoing securities are being made in
a transaction not involving a public offering and the securities
have not been registered under the Securities Act of 1933, as
amended, and may not be reoffered or resold in the United States
except pursuant to an effective registration statement or an
applicable exemption from the registration requirements.
Concurrently with the execution of the securities purchase
agreement, Neurogene and the investors entered into a registration
rights agreement pursuant to which the Company has agreed to file a
registration statement with the Securities and Exchange Commission
(the “SEC”) registering the resale of the shares of Common Stock
and the Common Stock issuable upon exercise of the pre-funded
warrants sold in the PIPE financing.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction.
About Neurogene
The mission of Neurogene is to treat devastating neurological
diseases to improve the lives of patients and families impacted by
these rare diseases. Neurogene is developing novel approaches and
treatments to address the limitations of conventional gene therapy
in central nervous system disorders. This includes selecting a
delivery approach to maximize distribution to target tissues and
designing products to maximize potency and purity for an optimized
efficacy and safety profile. Neurogene’s novel and proprietary
EXACT transgene regulation platform technology allows for the
delivery of therapeutic levels while limiting transgene toxicity
associated with conventional gene therapy. Neurogene has
constructed a state-of-the-art gene therapy manufacturing facility
in Houston, Texas. CGMP production of NGN-401 was conducted in this
facility and will support pivotal clinical development
activities.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release which are not historical in
nature are intended to be, and hereby are identified as,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements may
discuss goals, intentions and expectations as to future plans,
trends, events, results of operations or financial condition, or
otherwise, based on current expectations and beliefs of the
management of Neurogene, as well as assumptions made by, and
information currently available to, management of Neurogene,
including, but not limited to, statements regarding: the intended
use of proceeds from the PIPE financing, Neurogene’s cash
sufficiency and runway, the expected timing of closing of the PIPE
financing and the completion of the PIPE financing, Neurogene’s
business plans; and its expected cash resources and liquidity.
Forward-looking statements generally include statements that are
predictive in nature and depend upon or refer to future events or
conditions, and include words such as “may,” “will,” “should,”
“would,” “expect,” “anticipate,” “plan,” “likely,” “believe,”
“estimate,” “project,” “intend,” “on track,” and other similar
expressions or the negative or plural of these words, or other
similar expressions that are predictions or indicate future events
or prospects, although not all forward-looking statements contain
these words. Forward-looking statements are based on current
beliefs and assumptions that are subject to risks, uncertainties
and assumptions that are difficult to predict with regard to
timing, extent, likelihood, and degree of occurrence, which could
cause actual results to differ materially from anticipated results
and many of which are outside of Neurogene’s control. Such risks,
uncertainties and assumptions include, among other things: market
conditions and the satisfaction of the customary closing
conditions, and other risks and uncertainties identified under the
heading "Risk Factors" included in Neurogene’s Annual Report on
Form 10-K for the year ended December 31, 2023, filed with the
Securities and Exchange Commission (“SEC”) on March 18, 2024, or
its Quarterly Report on Form 10-Q for the quarter ended June 30,
2024, and other filings that Neurogene has made and may make with
the SEC in the future. Nothing in this communication should be
regarded as a representation by any person that the forward-looking
statements set forth herein will be achieved or that the
contemplated results of any such forward-looking statements will be
achieved. Forward-looking statements in this communication speak
only as of the day they are made and are qualified in their
entirety by reference to the cautionary statements herein. Except
as required by applicable law, Neurogene undertakes no obligation
to revise or update any forward-looking statement, or to make any
other forward-looking statements, whether as a result of new
information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241104841591/en/
Company Contact: Cara Mayfield Vice President, Corporate
Affairs cara.mayfield@neurogene.com
Investor Contact: Melissa Forst Argot Partners
Neurogene@argotpartners.com
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