The recent financing boosts Bicycle Therapeutics’ balance sheet, bringing the pro forma cash position to approximately $1 billion. This financial runway is expected to extend into the second half of 2027, providing robust support for the ongoing advancement of their clinical-stage pipeline.
Kevin Lee, CEO of Bicycle Therapeutics, said: “We are excited to announce today’s financing as it underscores the increasing conviction that our investors have in the Bicycle platform and team to create novel precision-guided therapeutics, which we believe have the potential to offer patients a significantly improved quality of life over other treatments.
“This financing will support our progress across multiple high-value programs and earlier discovery pipeline, both of which have multiple catalysts in the second half of 2024, as we develop innovative medicines that could help patients with cancer and other diseases live longer and live well.”
Details of the financing
Bicycle Therapeutics has entered into a securities purchase agreement to issue and sell 25,933,706 American Depositary Shares (ADSs), each representing one ordinary share. For investors preferring non-voting ordinary shares, those are also available, priced at $21.42 per share through this private investment in public equity (PIPE) financing. The financing is anticipated to close on May 28, 2024, subject to customary closing conditions.
The financing was led by a U.S.-based healthcare-focused investor, with significant participation from Deep Track Capital, EcoR1 Capital, Fairmount, Forbion, Perceptive Advisors, and RA Capital Management. The proceeds from this financing will be allocated to further development of Bicycle’s proprietary pipeline, other research and development initiatives, and general corporate purposes.
Bicycle plans to utilize the net proceeds to advance its pipeline of precision-guided therapeutics, which holds promise for treating cancer and other serious diseases. This strategic investment is poised to drive multiple high-value programs and catalysts expected in the latter half of 2024. Jefferies is acting as the sole placement agent for this financing.
Regulatory and Legal Considerations
The offer and sale of the securities in the PIPE are being conducted as a private placement, not involving a public offering. These securities are not registered under the Securities Act of 1933 or applicable state securities laws and will be sold in accordance with an exemption from registration. Bicycle Therapeutics has committed to filing a registration statement with the SEC to register the resale of the ADSs and ordinary shares issued in this transaction.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such offer or sale would be unlawful.