Structure Therapeutics is offering over nine million shares on the heels of mid-stage data for its oral GLP-1 receptor agonist, which showed weight loss of 6.2% in overweight or obese patients.
Structure Therapeutics announced on Wednesday that it will proceed with an upsized public offering worth approximately $476 million, after reporting positive Phase IIa data for its weight-loss drug candidate earlier this week.
The biopharma’s underwritten public offering is for over nine million shares priced at $52.50 per share. According to Structure, underwriters will have a 30-day option to purchase over 1.3 million additional shares. The offering is expected to close on June 7, 2024.
On Monday, Structure unveiled topline mid-stage results for its oral GLP-1 receptor candidate, GSBR-1290, which reached its primary and secondary endpoints. The Phase IIa results showed a mean weight loss of 6.2% after 12 weeks in 64 obese or overweight patients. Also, in week 12, around two-thirds of patients lost 6% or more of their body weight while the other third lost 10% or more, compared to 0% in the placebo arm.
According to Structure’s S-1 report to the SEC, which was also submitted on Monday, the biotech plans to use the funds from the public offering to advance the development of its GLP-1 oral small molecule and finish the Phase IIb study in obesity and a Phase II trial in type 2 diabetes. The company also intends to start Phase III trials in obesity and type 2 diabetes for GSBR-1290.
Structure also plans to use the funds to advance other programs, with any remaining money earmarked for other R&D activities and general purposes as well as hiring additional staff. The biopharma’s cash runway extends through 2027. However, Structure said it would need to raise more capital to finish developing and eventually commercializing its products.
Monday’s Phase IIa results impressed investors. After the data was released, the company’s shares saw a massive spike in stock price, reaching over $54 and marking a 58% increase. Structure’s stock sits at $56.30 as of the close of trading on Wednesday.
In a note to investors, Bank of Montreal Capital Markets wrote that GSBR-1290 showed “impressive safety and tolerability” and that higher dosing could drive efficacy and broaden the uptake.
While Structure has shown promise with its oral GLP-1, it is in a crowded field of potential oral GLP-1 medicines as large players such as Eli Lilly, Novo Nordisk, Pfizer, and Roche are developing competing candidates. In a Phase II trial last year, patients treated with Lilly’s orforglipron lost 8.6% to 12.6% of their body weight.
Tyler Patchen is a staff writer at BioSpace. You can reach him at tyler.patchen@biospace.com. Follow him on LinkedIn.
