Disc Medicine prices upsized $450 million offering to fund drug development
Key Facts
Disc Medicine announced on 20 October 2026 that it had priced an upsized public share offering expected to raise gross proceeds of $450 million to support development of its drug candidates and preparations for their potential commercialization. The company said in its pricing statement that it was selling 6,000,000 common shares. It set the public offering price at $75.00 per share. The announced proceeds represent the expected amount before underwriting discounts and commissions and expenses, assuming underwriters do not exercise their option to buy additional shares. The new size exceeds the $350 million target announced when the company launched the offering on 19 October 2026. The initial announcement included common shares and pre-funded warrants, while the latest pricing announcement specifies an issuance of common shares.
Disc Medicine granted underwriters an option to purchase up to 900,000 additional shares, according to the terms in its statement. The option runs for 30 days, allowing underwriters to purchase shares beyond the base offering during that period. Additional shares would be purchased at the public offering price, less underwriting discounts and commissions, according to the company's announcement. The company intends to use the net proceeds, together with existing resources, to fund its research and development activities. It specified "clinical research and development" of its current or additional drug candidates among those uses, extending the scope of funding to its existing programs and any drug programs it may add.
The financing comes as the company announced the success of its pivotal APOLLO trial of bitopertin, which it said met all primary and secondary endpoints. The Phase 3 study was conducted in patients with EPP, including patients with XLP, according to the trial results statement. The study enrolled 183 patients and included participants in the United States, Canada, Europe and Australia. The trial used a randomized, double-blind design, according to the company's description when it announced the results. Disc Medicine said bitopertin was generally well tolerated by study participants. It added in its statement that "no new safety signals" emerged in APOLLO, alongside its announcement that the pivotal trial met its primary and secondary clinical endpoints.
The company earmarked part of the offering proceeds to support the potential commercialization of bitopertin for EPP and XLP, according to the pricing statement. Its plan also includes commercial readiness activities for other drug candidates, alongside funding clinical research and development. It intends to allocate the remaining funds to working capital and general corporate purposes, according to its stated uses for the offering. Disc Medicine previously reported in its second-quarter results that cash, cash equivalents and marketable securities totaled $717.7 million as of 30 June 2026. It said at the time that it expected those resources to fund its operating plans into 2029, the funding runway it announced before the current offering.
In the market, EL7 closing-price data showed that the company's shares, traded under the ticker IRON, rose in the sessions preceding and coinciding with the pricing announcement. The stock closed at $56.84 on 16 October before rising to a close of $78.93 on 19 October. It then closed at $79.48 on 20 October, the day the upsized public offering's pricing statement was issued. The offering price was therefore below the stock's closing price on the day of the pricing announcement and below its close in the preceding session. The company's move from announcing the initial size to pricing the upsized offering coincided with a continued rise in the stock's closing price between the 19 and 20 October sessions, according to EL7 data.
Disc Medicine expects the offering to close on 22 October 2026, subject to customary closing conditions, according to the pricing announcement. On bitopertin's regulatory path, the company plans to resubmit its new drug application to the U.S. Food and Drug Administration by the end of 2026. It set that target in its APOLLO results statement, which outlined the pivotal trial's success and clinical endpoints. The company expects an FDA decision on the application by mid-2027, according to its announced timeline. Bitopertin remains an investigational drug that is not approved for therapeutic use in any country, according to the company, while its announced spending plans for the offering proceeds include support for potential commercialization.