Bicycle PIPEs up to gross c$555m from new financing

24 May, 2024
Tony Quested
Cambridge UK pharma company Bicycle Therapeutics has unveiled a sensational $555 million investment haul on the US’s NASDAQ market.
Credit – Bicycle Therapeutics

The money from new and existing backers is being reeled in through a private investment in public equity (PIPE) financing and should close early next week (May 28).

It will strengthen Bicycle’s balance sheet via a pro forma cash position of around $1 billion and is expected to extend the financial runway into the second half of 2027.

The financing has been led by a US-based healthcare-focused investor with participation from Deep Track Capital, EcoR1 Capital, Fairmount, Forbion, Perceptive Advisors and RA Capital Management.

Bicycle plans to use the net proceeds to fund the continued development of its proprietary pipeline and for other R & D, as well as for general corporate purposes.

CEO Kevin Lee was unsurprisingly thrilled by the rush to back the company which is a significant player on both sides of the Atlantic.

He 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.”

Bicycle is pioneering a new and differentiated class of therapeutics based on its proprietary bicyclic peptide (Bicycle®) technology – hence the name. While the c$550m is an estimated figure right now, seasoned NASDAQ observers do not expect it to be significantly different come Tuesday.