4DMT Prices $100M Stock Offering to Fund Gene Therapy Trials
Capital raise follows positive long-term data for its lead wet AMD drug candidate, 4D-150, as the company prepares for pivotal Phase 3 studies.
4D Molecular Therapeutics (NASDAQ: FDMT), a clinical-stage gene therapy company, announced the pricing of a $100 million public offering of common stock and pre-funded warrants late Wednesday, a strategic move to fund late-stage clinical trials for its promising ophthalmology drug candidate.
The Emeryville, California-based firm priced the offering of 8,385,809 shares of its common stock at $10.51 per share. The pricing represents a minimal discount to its closing price on November 5. The offering also includes pre-funded warrants to purchase up to 1,128,949 shares, according to the company's official announcement. Shares of FDMT were trading at $10.51 in early Thursday activity.
Such offerings are common in the capital-intensive biotechnology sector and often cause short-term pressure on a company's stock due to the dilutive effect on existing shareholders. With approximately 46.7 million shares outstanding prior to the offering, the new issuance represents a significant increase in the share count for the company, which has a market capitalization of roughly $502 million.
The capital raise is strategically timed, coming on the same day the company released positive long-term data from its Phase 1/2 PRISM clinical trial for 4D-150, an intravitreal gene therapy treatment for wet age-related macular degeneration (wet AMD), a leading cause of vision loss.
The results demonstrated that 4D-150 was well-tolerated and showed durable vision maintenance and a reduction of up to 94% in the need for supplemental injections, a significant potential improvement over the current standard of care which can require frequent treatments. The positive data readout provides crucial momentum as 4DMT prepares to advance the candidate into more expensive and expansive Phase 3 trials.
Proceeds from the offering are expected to be used to fund these pivotal studies, named 4FRONT-1 and 4FRONT-2, which are slated to begin in the first and third quarters of 2025, respectively. The company anticipates topline data from these trials in the second half of 2027, a key milestone on the path to potential regulatory approval and commercialization.
The financing is being managed by a syndicate of investment banks, with Leerink Partners, Evercore ISI, and Cantor serving as joint book-running managers. This backing from established healthcare-focused banks underscores investor interest in 4DMT's gene therapy platform and its lead asset.
For investors, the transaction presents a classic biotech trade-off. While the immediate dilution can be a headwind, the infusion of capital is critical for funding the very catalysts that could create long-term value. The company's cash runway is now significantly extended, de-risking the execution of its late-stage clinical development plans for 4D-150. Beyond its lead program in wet AMD, 4DMT's pipeline also includes treatments for cystic fibrosis lung disease (4D-710) and Fabry disease cardiomyopathy (4D-310), which will also benefit from the strengthened balance sheet.
The current analyst consensus price target for FDMT sits at $32.89, suggesting significant upside from its current levels, though the stock remains volatile, with a 52-week range of $2.24 to $12.34. The success of the upcoming Phase 3 trials will be the ultimate determinant of whether this capital raise marks a successful bridge to commercial viability.