Eledon Raises $50 Million in Private Placement

Rare Daily Staff

Eledon Pharmaceuticals entered into a securities purchase agreement with certain institutional and accredited healthcare investors for a private investment in public equity financing that is expected to result in gross proceeds of approximately $50 million, before deducting offering expenses.

Eledon is selling an aggregate of 13.1 million shares of its common stock at a price of $2.37 per share and pre-funded warrants at a price of $2.369 per underlying share, which are exercisable to purchase 8 million shares of common stock at a price of $0.001 per share. The financing is expected to close the week of May 6, 2024, subject to satisfaction of customary closing conditions. The oversubscribed financing was led by BVF Partners and includes participation from new and existing investors.

Eledon intends to use the net proceeds from the private placement to fund pre-commercial activities for its products and general corporate purposes, which will include the clinical development of its lead asset tegoprubart.

Tegoprubart is an anti-CD40L antibody with high affinity for the CD40 ligand, a well-validated biological target that has broad therapeutic potential. The central role of CD40L signaling in both adaptive and innate immune cell activation and function positions it as an attractive target for non-lymphocyte depleting, immunomodulatory therapeutic intervention. Eledon’s preclinical and clinical stage research demonstrates that tegoprubart effectively targets the CD40L pathway, which plays a central role in organ rejection. The company is currently conducting clinical research on the potential benefits of treatment with tegoprubart in kidney transplantation and xenotransplantation, and also assessing the benefits of targeting the CD40L in patients with autoimmune and neurodegenerative diseases including ALS. Eledon has successfully completed a phase 2, dose ranging, biomarker study in amyotrophic lateral sclerosis.

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