Bicycle Therapeutics advances with $555M boost

Bicycle Therapeutics recently announced a significant private placement equity financing valued at $555 million, aimed at advancing its precision-guided therapeutics founded on its unique bicyclic peptide technology, referred to as Bicycle. This announcement led to an approximate 18% increase in the company's share price on Thursday.

The influx of funds from this financing round will bolster Bicycle's financial position, resulting in approximately $1 billion in cash reserves. This enhanced financial stability is projected to extend the company's operational runway into the latter half of 2027. CEO Kevin Lee emphasized the importance of this capital infusion, stating, "This financing will support our progress across multiple high-value programmes and earlier discovery pipeline, both of which have multiple catalysts in the second half of 2024."

The terms of the agreement include Bicycle entering a securities purchase agreement with a mix of existing and new investors, involving the sale of 25.9 million shares at $21.42 each. The financing was led by a prominent but unnamed U.S.-based investor specializing in healthcare, with additional participation from Deep Track Capital, EcoR1 Capital, Fairmount, Forbion, Perceptive Advisors, and RA Capital Management.

Bicycle Therapeutics’ primary asset is BT8009, a Bicycle toxin conjugate (BTC) that targets Nectin-4. This experimental drug is currently undergoing two clinical trials, including the Phase II/III Duravelo-2 study in metastatic urothelial cancer. Initiated earlier this year, Duravelo-2 aims to enroll 956 patients and evaluate BT8009 both as a monotherapy and in combination with Merck & Co.'s Keytruda (pembrolizumab), with results expected by 2030.

Additionally, Bicycle’s development pipeline features BT5528, another BTC targeting EphA2, which is in a Phase II trial expected to conclude by the end of this year. Another promising candidate is BT7480, a Nectin-4/CD137 Bicycle tumor-targeted immune cell agonist, currently in Phase I/II testing, with anticipated readout towards the end of 2025.

Bicycle Therapeutics has also forged significant partnerships to enhance its research and development capabilities. Last year, the company entered into agreements with Bayer and Novartis, each potentially worth up to $1.7 billion, focusing on radioconjugate development. In addition, in 2020, Bicycle partnered with Roche's Genentech unit in another deal valued up to $1.7 billion to create Bicycle-based immuno-oncology therapies.

These strategic alliances and the recent substantial capital raise underscore Bicycle Therapeutics' commitment to advancing its innovative therapeutic technologies and expanding its pipeline, positioning the company for sustained growth and development in the oncology sector.