Disc Medicine files for $350 million public stock offering

Disc Medicine, Inc. (NASDAQ: IRON) has begun an underwritten public offering of $350 million in common stock, with the option for certain investors to purchase pre-funded warrants instead of shares. The clinical-stage biopharmaceutical company will sell all securities in the proposed deal directly, subject to market conditions and other factors.

The company intends to give underwriters a 30-day option to buy up to an additional $52.5 million of common stock at the public offering price, minus underwriting discounts and commissions. Jefferies, Leerink Partners, Morgan Stanley, and Cantor are serving as joint book-running managers for the transaction.

Disc plans to use the net proceeds, along with its existing cash, cash equivalents, and marketable securities, to fund research and clinical development for current or additional product candidates. The capital is also earmarked to support the potential rollout of bitopertin for erythropoietic protoporphyria (EPP) and X-linked protoporphyria (XLP), as well as pre-commercialization activities for other candidates. The remaining funds will be used for working capital and general corporate purposes.

The offering is being made pursuant to an automatic shelf registration statement filed with the Securities and Exchange Commission on August 8, 2024. A preliminary prospectus supplement will be filed with the SEC. Disc noted that there is no assurance as to whether or when the offering will be completed, nor as to its final size or terms.