Why This Biotech Stock Just Doubled In A Single Day

Vor Biopharma Inc. VOR saw its stock climb Thursday following a strategic licensing agreement and a major capital raise to support its push into autoimmune therapies.

The developments mark a pivotal evolution for the Cambridge-based biotech, which was originally launched by PureTech Health plc PRTC.

Vor Bio signed an exclusive global licensing deal with RemeGen Co., Ltd., giving it rights outside Greater China to develop and commercialize telitacicept, a dual-action fusion protein already approved in China for multiple autoimmune disorders.

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Under the agreement, Vor will pay $125 million upfront, $45 million in cash, and $80 million in stock warrants, along with potential milestone payments exceeding $4 billion and tiered royalties.

Alongside the licensing news, Vor announced on Wednesday a private placement in public equity, which is expected to raise roughly $175 million in gross proceeds.

The financing involves the issuance of 700 million pre-funded warrants at $0.25 each, with shares exercisable at $0.0001 upon shareholder approval. The transaction is anticipated to close on June 27, pending standard conditions.

On Thursday, Wedbush analyst David Nierengarten reiterated a Neutral rating on the company, and maintained a 40 cents price forecast.

Meanwhile, biotech veteran Jean-Paul Kress, M.D. has stepped in as CEO and Chairman of the company, replacing Dr. Robert Ang, who will stay on as a strategic advisor through October.

Kress brings decades of executive experience, including past roles at MorphoSys, Syntimmune, and current board service at Sanofi SNY.

He expressed enthusiasm for leading Vor through its transition into a leading autoimmune innovator. As of May 8, PureTech held a 2.1% beneficial ownership stake in Vor Bio, reflecting its founding role in the company.

According to Benzinga Pro, VOR stock has lost over 30% in the past year.

Price Action: VOR shares are trading higher by 112.8% to $1.18 at last check Thursday.

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