COGT - Cogent Biosciences: Stock Soars On Cash Injection Ahead Of Major Data Catalyst

2024-02-14 15:30:47 ET

Summary

• Cogent Biosciences, Inc. has entered into a securities purchase agreement for a private investment in public equity financing, expected to raise approximately $225 million.
• The financing was led by Commodore Capital and a large investment management firm, with participation from several notable biotech investment firms.
• The funds will be used for research and development, activities related to bezuclastinib, the company's lead candidate.
• The hope is that bezuclastinib can secure approval to treat advanced and non-advanced systemic mastocytosis - a >$2bn potential market.
• There is a major data catalyst upcoming, when the company announces Phase 2 data from its SUMMIT study in non-advSM. Blueprint medicines Ayvakit is already approved in this indication, and bezuclastinib must show superiority to this drug. If it can, the share price may soar again.

Investment Overview

Cogent Biosciences, Inc. ( COGT ) stock is soaring today after the Waltham, Massachusetts based biotech announced via a press release today that it has:

entered into a securities purchase agreement for a private investment in public equity financing that is expected to result in gross proceeds of approximately $225 million to the Company, before deducting placement agent fees and offering expenses.

This financing was led by Commodore Capital and a large investment management firm and included participation from both new and existing investors, including Fairmount Funds, Redmile Group, Janus, TCGX, Adage Capital Partners LP, Venrock Healthcare Capital Partners, Deerfield and Perceptive Advisors.

J.P. Morgan Securities LLC, Jefferies LLC and Piper Sandler & Co. acted as placement agents.

For further details see: