Forte Biosciences Inc. (NASDAQ:FBRX) shares are trading higher Wednesday. The company announced a $53 million private placement to fund the development of its autoimmune-focused drug candidate, FB102. Here’s what you need to know.
What To Know: Forte, a clinical-stage biopharmaceutical company focused on autoimmune and autoimmune-related diseases, announced an oversubscribed $53 million equity financing to support clinical trials of FB102, including ongoing research in celiac disease with topline results expected in the second quarter of 2025.
Forte said it also plans to expand FB102 trials to other autoimmune indications within the next year.
The private placement involved institutional investors including OrbiMed, Janus Henderson Investors and Tybourne Capital Management. TD Cowen served as the lead placement agent, with Guggenheim Securities providing advisory services.
“This financing by high quality institutional investors is transformative for Forte and highlights the meaningful potential for FB102. As a result of the financing, Forte is well capitalized to continue advancing FB102 across autoimmune indications,” said Paul Wagner, chairman and CEO of Forte Biosciences.
It’s worth noting that there have been several trading halts in Forte’s stock on Wednesday as shares surged as much as 171%. Some of the trading action appears to be retail-driven. The stock was among the top trending names on Stocktwits on Wednesday.
13.51% of Forte’s float is currently sold short, according to data from Benzinga Pro. Forte is also considered a low-float stock with just 1.37 million shares available for public trading. The company also had a market cap of less than $9 million as of Tuesday's close. Low-float, micro-cap stocks can be extremely volatile, which may help explain some of Wednesday's outsized move.
Forte will host an R&D Day on Dec. 3 to provide additional updates on its clinical programs and development strategy.
“As we have previously indicated, the healthy volunteer study has completed and a celiac disease trial is underway with a topline readout projected in the second quarter of 2025. We expect to advance FB102 into additional indications over the next 12 months. 2025 could be an exciting year of clinical milestones for FB102,” Wagner said.
FBRX Price Action: Forte Biosciences shares were up 120.6% at 13.07 at the time of publication, according to Benzinga Pro.
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