REGENXBIO raises $100M in stock offering as shares fall 15%

REGENXBIO Inc. priced a $100 million public stock offering at $9.00 per share, sending shares down 15% in after-hours trading as existing shareholders faced dilution from the 10 million-share sale.

The Rockville, Maryland-based gene therapy company sold 10,003,889 shares of common stock at $9.00 each and 1,111,111 pre-funded warrants at $8.9999 per warrant, according to a statement Thursday. Underwriters led by Morgan Stanley, J.P. Morgan, Leerink Partners and Mizuho have a 30-day option to purchase an additional 1.67 million shares.

"The proceeds will support our ongoing clinical programs and manufacturing capabilities as we advance our pipeline of one-time gene therapies," the company said, without detailing specific allocation. REGENXBIO reported earlier this year that its cash and investments would fund operations into early 2027, suggesting the new capital may extend that runway as it approaches multiple late-stage catalysts.

REGENXBIO's platform uses adeno-associated virus vectors to deliver functional copies of missing or defective genes, a one-time treatment approach for rare genetic diseases. Its lead candidate, RGX-202, targets Duchenne muscular dystrophy, a progressive muscle-wasting disorder affecting roughly one in 3,500 male births, and showed positive results in a late-stage study. The company also plans to resubmit its Hunter syndrome treatment, NAVSUNLI, for FDA approval after a February rejection, while two eye disease programs partnered with AbbVie — surabgene lomparvovec for wet age-related macular degeneration and diabetic retinopathy — are expected to report major data in the fourth quarter.

The $9.00 offering price represents a discount to recent trading levels and will serve as a reference point as investors assess the company's execution over the next six months. REGENXBIO also earns royalties from ZOLGENSMA, Novartis's spinal muscular atrophy gene therapy that has treated thousands of patients, providing a revenue stream that partially offsets development costs. With the AbbVie-partnered programs approaching pivotal data and the Duchenne program advancing, the next two quarters will determine whether the capital raise funds a value-creating inflection or merely extends the timeline for a cash-burning biotech trading at a fraction of its pipeline's potential peak sales.

This article is for informational purposes only and does not constitute investment advice.