Bicycle Therapeutics Secures $555M in Private Equity Financing

Bicycle Therapeutics Limited, a clinical-stage pharmaceutical company specializing in a novel class of therapeutics based on its proprietary bicyclic peptide technology, has announced a new financing initiative. The company has entered into a securities purchase agreement with both existing and new accredited investors to issue and sell an aggregate of 25,933,706 American Depositary Shares (ADSs) and, for those who opt for it, non-voting ordinary shares. Each share is priced at $21.42, and the total expected gross proceeds from this private investment in public equity (PIPE) financing are approximately $555 million. The anticipated closure date for this financing is May 28, 2024, subject to customary closing conditions.

The financing initiative has been spearheaded by a U.S.-based healthcare-focused investor and includes participation from notable investment firms such as Deep Track Capital, EcoR1 Capital, Fairmount, Forbion, Perceptive Advisors, and RA Capital Management. According to Bicycle Therapeutics, the funds raised will be directed towards advancing the development of its proprietary therapeutic pipeline, conducting further research and development, and for general corporate purposes.

Dr. Kevin Lee, CEO of Bicycle Therapeutics, expressed enthusiasm about the financing, highlighting the increasing confidence investors have in the company's platform and team. Dr. Lee noted that the funds would support multiple high-value programs, as well as the earlier discovery pipeline, which are expected to yield significant developments in the latter half of 2024. The company's focus remains on creating innovative medicines with the potential to significantly improve the quality of life for patients suffering from cancer and other diseases.

Post-financing, Bicycle Therapeutics expects its cash and cash equivalents to stand at approximately $1.0 billion as of May 23, 2024. However, this figure is a preliminary estimate and may change based on new information.

Jefferies is serving as the sole placement agent for the financing. The securities being sold in this PIPE financing are part of a private placement and have not been registered under the Securities Act of 1933. Consequently, these securities cannot be sold in the United States unless they are registered or there is an applicable exemption from registration requirements. Bicycle Therapeutics has agreed to file a registration statement with the SEC to facilitate the resale of these securities.

Bicycle Therapeutics is headquartered in Cambridge, UK, with additional key functions and leadership team members based in Cambridge, Massachusetts. The company is dedicated to developing a new class of medicines known as Bicycle molecules, short peptides stabilized by small molecule scaffolds that enhance target binding specificity and affinity. Such characteristics make Bicycle molecules promising candidates for drug development.

Currently, the company is evaluating several clinical-stage programs, including BT8009, a Bicycle Toxin Conjugate (BTC) targeting the tumor antigen Nectin-4; BT5528, another BTC targeting EphA2; and BT7480, a Bicycle Tumor-Targeted Immune Cell Agonist targeting Nectin-4 and CD137. Additionally, Bicycle Therapeutics is developing Bicycle Radio Conjugates for radiopharmaceutical applications and exploring the broader potential of its technology through various partnerships.

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