The net proceeds from the funding are intended to fund clinical research into advanced colon cancer and will potentially provide runway until 2031.
Agenus is also changing its core drug combination to treat early, high-risk colon cancer before surgery.
According to Agenus, this condition represents a potential US market opportunity of more than $7 billion annually.
Shares of Agenus (AGEN) jumped 100% on Monday after the company announced an oversubscribed private placement of up to $340 million and a strategic pivot to prioritize its leading early-stage colon cancer treatment program.
The stock is now on track for its best day ever if the gains continue.
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Funding details
Agenus raises up to $340 million from investors in private deal. The company is expected to raise about $85 million soon and could raise another $255 million later if investors buy more shares.
The net proceeds from the funding are intended to fund clinical research into advanced colon cancer and will potentially provide runway until 2031.
As of March 31, the company had just $35.0 million in cash and cash equivalents.
New pipeline focus
Agenus is changing its lead drug combination (botensilimab plus balstilimab) to treat early, high-risk colon cancer before surgery, the company said. The company is currently planning a large late-stage study in patients, with the first patient expected to receive a dose in the first quarter of 2027. The disease represents a potential US market opportunity of more than $7 billion annually, Agenus reports.
At the same time, Agenus is withdrawing financial support for another study in patients with more advanced colon cancer. Previously, smaller studies of the drug combination showed promising results, with many patients responding well to treatment, the report noted.
Expert opinion
HC Wainwright analyst Emily Bodnar raised her price target on Agenus shares to $30 from $23 and maintained a Buy rating on the stock. HC Wainwright views the change in strategy as favorable, stating that there is currently no standard of care for neoadjuvant treatment for this disease. The company’s new price target represents an upside of approximately 796% from the stock’s last closing price.
On X, investor commonly referred to as the “pharma bro,” Martin Shkreli, wrote, “Shorting $AGEN-PIPE doesn’t change the bleak outlook. Must go back to PIPE price.”
How have AGEN retailers responded?
On Stocktwits, over the past 24 hours, retail sentiment for AGEN shares has risen from bullish to extremely bullish, and message volume has increased from normal to extremely high levels.
A Stocktwits user expressed optimism about the pipeline turnaround, which will increase the market potential of the company’s drug combination.
Another user expressed hope for a further rally.
Both analysts covering AGEN rate the stock a Buy, according to Koyfin. The stock’s 12-month average price target is $15.50, which represents an upside of 363% from the stock’s Friday close.
AGEN shares have more than doubled since the start of the year.
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Anan Ashraf has no position in any of the stocks mentioned in this article. The content of the StockTwits newsgroup is for informational purposes only and does not constitute investment advice. Read more in our editorial policy. This article was originally published on StockTwits.
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