Immunic Inc (NASDAQ:IMUX) announced that it has priced an oversubscribed private placement expected to generate up to $400 million in gross proceeds as the biotechnology company works to transition toward commercialization of its multiple sclerosis pipeline.
Shares jumped nearly 28% on Friday morning, reaching $1.11 in New York.
The financing includes $200 million in upfront proceeds through the issuance of 229,076,000 pre-funded warrants priced at $0.873 each, with the potential for an additional $200 million from accompanying warrants if exercised. The private placement is expected to close on or about February 17, subject to customary conditions.
The offering was led by existing investor BVF Partners and included participation from institutional investors such as Aberdeen Investments, Avidity Partners, Coastlands Capital, EcoR1 Capital, Janus Henderson Investors, OrbiMed, RA Capital Management, TCGX, Trails Edge Capital Partners, Vivo Capital and Woodline Partners.
Immunic said the proceeds are intended to support its shift from a research-focused organization to a fully integrated commercial-stage company. The company plans to use the funds to complete the Phase 3 ENSURE trials of vidofludimus calcium in relapsing multiple sclerosis, initiate a Phase 3 program in primary progressive multiple sclerosis later this year, and expand its medical and commercial infrastructure ahead of a potential launch.
Top-line data from the ENSURE studies is still expected by the end of 2026. Immunic said it plans to submit a US new drug application in mid-2027 and is targeting a potential regulatory approval in 2028.
Vidofludimus calcium is designed to provide neuroprotective effects through nuclear receptor-related 1 (Nurr1) activation while reducing inflammatory damage via selective dihydroorotate dehydrogenase (DHODH) inhibition, an approach the company believes could address both relapse-associated worsening and progression independent of relapse activity in multiple sclerosis.
Alongside the financing, Immunic announced leadership changes as it prepares for its next phase. Its co-founder and CEO Daniel Vitt will begin a search, together with the board, for a new chief executive with commercial experience in multiple sclerosis. Vitt plans to transition to a senior executive role focused on scientific strategy while remaining a board member.
Simona Skerjanec, former senior vice president and global head of neuroscience and rare diseases at Roche, has been elevated to interim chairperson of the board. Thor Nagel, principal at BVF Partners, has been appointed to the board. The company said it intends to continue refreshing board composition over the coming annual meetings to align with its strategic goals.
Vitt said he believes now is the “perfect time” to prepare Immunic for its transformation into a highly successful commercial entity.
“As Immunic evolves from an R&D‑driven organization into a fully-fledged commercial company, I have decided to return to my roots and focus my energy on further strengthening Immunic's scientific excellence,” Vitt said in a statement.
“Together with our new interim Chairperson Simona and other members of our Board of Directors, I look forward to welcoming a new CEO with a strong commercial background in the MS space to lead the next phase of Immunic's growth and to guide the potential launch of our first pharmaceutical product.”
Separately, Immunic said it entered into a purchase and sale agreement with certain holders of its May 2025 Series B warrants. In exchange for canceling those warrants, the holders will receive rights to a portion of an aggregate 5% royalty on future net sales of vidofludimus calcium. The company expects the transaction to close on or about February 17.
Leerink Partners acted as lead placement agent for the private placement, with Stifel, Guggenheim Securities, William Blair, LifeSci Capital, B. Riley Securities and Brookline Capital Markets also serving as placement agents. Immunic said the proceeds from the financing, together with existing cash and marketable securities, are expected to fund operating and capital expenditures into late 2027.