PYC Therapeutics Limited (ASX:PYC) is an Australia-based clinical-stage biotech company developing innovative RNA therapies to improve the lives of patients with genetic disorders. It leverages a proprietary drug delivery platform to enhance the effectiveness of precision medicines within the expanding and commercially validated RNA therapeutics sector.
PYC Therapeutics Raises A$146M for Drug Development
PYC Therapeutics is conducting a 1-for-4 pro-rata accelerated non-renounceable entitlement offer to raise up to A$146 million. This means that eligible shareholders can purchase one new share for every four existing shares they hold.
The offer price is set at A$1.25 per share, which is 2.7% lower than the last traded price and represents a 4.9% discount to the 5-day volume-weighted average price. The discounted pricing is designed to attract investor participation while maintaining capital efficiency for the company.
The funds raised will be used to advance PYC’s drug development pipeline, focusing on RNA-based therapies for genetic diseases.
Specifically, PYC aims to progress its first blinding eye disease drug candidate into late-stage human trials and move its second eye disease treatment into mid-stage trials.
Additionally, the company plans to develop a polycystic kidney disease drug through early-stage human trials and support the Phelan-McDermid Syndrome drug program as it transitions to human testing.
Beyond these targeted therapies, PYC will invest further in drug discovery and platform development, while also covering working capital and entitlement offer costs to ensure operational stability.
PYC Secures Investor Support
A significant portion of the capital raise is backed by Australian Land Pty Ltd, an entity controlled by PYC Chairman Alan Tribe, which has committed A$35 million.
To ensure the success of the offering, several existing shareholders have underwritten up to A$70 million, meaning the company is guaranteed to raise at least A$105 million even if some shareholders do not take up their entitlements. This strong backing provides confidence in the company’s growth and funding stability.
PYC Therapeutics is a clinical-stage biotechnology company focusing on RNA-based therapies for genetic diseases. It acknowledges risks and uncertainties in its forward-looking statements, noting that actual results may vary based on market conditions, research outcomes, and regulatory approvals.