Entera Bio Secures Major Private Funding
Entera Bio Secures $275 Million Private Placement to Advance Key Drug Programs
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Key Points
1
The financing is not a public offering and the securities have not been registered under the Securities Act of 1933.
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The private placement includes immediately exercisable pre-funded warrants with an exercise price of NIS 0.0000769 per ordinary share and a 9.99% ownership cap on exercise.
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The round features a broad roster of new investors beyond Longitude and Vivo, including RA Capital Management, Venrock Healthcare Capital Partners, Perceptive Advisors, Driehaus Capital Management, Logos Capital and Catalio Capital Management.
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The stock surged about 87% intraday to roughly $3.83 and was halted due to volatility as traders reacted to the private placement news.
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Market coverage notes EB613 is being developed as the first oral once-daily PTH(1-34) tablet for osteoporosis, a detail highlighted in coverage of the financing.
Entera Bio has secured $275 million in a private placement to push its oral osteoporosis drug into a pivotal Phase 3 trial, sending its stock soaring 87% intraday to roughly $3.83 before trading was halted due to volatility, according to MarketWatch. The oversubscribed round is led by BVF Partners and marks a dramatic expansion for a company that had a far smaller market capitalization just days before the deal closed.
The capital injection is expected to fund Entera's operations through 2030, according to Nasdaq. Beyond osteoporosis, the money will also help move EB612, its treatment for hypoparathyroidism, into Phase 1 development alongside partner OPKO Health.
What the $275 Million Deal Actually Includes
Entera will issue roughly 122.96 million ordinary shares and up to 11.84 million pre-funded warrants, all priced at $2.04 per share, according to GuruFocus. The pre-funded warrants can be exercised at a near-zero price — NIS 0.0000769 per share — but holders are capped at owning 9.99% of the company at any one time. The deal is a private placement, meaning the securities are not registered under the U.S. Securities Act of 1933 and cannot be publicly traded right away.
BVF Partners led the round and will get the right to appoint two directors to Entera's board. New investors joining the cap table include Longitude Capital, Vivo Capital, RA Capital Management, Venrock Healthcare Capital Partners, Perceptive Advisors, Driehaus Capital Management, Logos Capital, and Catalio Capital Management, according to Market Screener.
EB613 Aims to Be the First Oral Daily Osteoporosis Pill
The main target for this funding is EB613, which Entera calls the first oral once-daily PTH(1-34) tablet for osteoporosis. PTH(1-34) is a type of parathyroid hormone that helps rebuild bone. Current PTH-based drugs for osteoporosis require injections. An oral version would be a significant step forward for patients.
Entera plans to use the proceeds to run Phase 3 registrational studies for EB613. These are the large, late-stage trials required before a drug can be approved. Passing Phase 3 is the final major hurdle before a company can seek approval from regulators like the FDA, according to Nasdaq.
Stock Surged 87% Before a Volatility Halt Froze Trading
Shares of Entera Bio jumped as high as $3.83 intraday after the announcement — an 87% gain from the prior close — before regulators halted the stock due to extreme price swings, according to MarketWatch. Nasdaq initially reported a 73% surge, reflecting how fast the price was moving during the session.
The spike shows how much weight investors placed on the deal. For a clinical-stage biotech with no approved products, a $275 million raise that covers four years of runway is a major vote of confidence. The oversubscribed nature of the offering — meaning demand exceeded supply — added to the positive market signal, according to Market Screener.
Entera's Broader Pipeline Gets a Runway to 2030
Alongside EB613, Entera will use part of the proceeds to advance EB612, its drug candidate for hypoparathyroidism — a rare condition where the body does not make enough parathyroid hormone. EB612 is being developed in collaboration with OPKO Health and will now move into Phase 1 human trials, according to GuruFocus.
The company says the funds will cover all development costs and general working capital needs through 2030. That long runway reduces the need to raise money again soon, which is often a concern for investors in small biotech firms. With a broad roster of top healthcare investors now on board, Entera enters its most critical development phase with significant financial backing.
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