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Concert Pharmaceuticals enter $65M Fundraising Agreement, Stock Price Surges

Nigel Firth
Nigel Frith trader
Updated 4 Nov 2021

The stock price of Concert Pharmaceuticals (NASDAQ: CNCE) gained as much as 40% in Thursday premarket trading, before retracing slightly with the market open and holding into gains of just under 25%. The gains reflect today’s fundraising agreement with Concert Pharmaceuticals, BVF Partners, and RA Capital Management. 

In a battle to break the bear slump, CNCE stock broke the $4.00 zone before consolidating around $3.60 – it appears investors are reacting well to the $65M fundraising partnership that will see the company fully funded until Q4 2022. Concert will also have the chance to bolster this with an additional $103M, should warrants be fully exercised with the agreement. 

Easing funding constrictions, Concert will be able to continue its operations to the best of its abilities, soothing antsy investor sentiment and facilitating the development of CTP-543, should the New Drug Application be granted in early 2023.

The financing partnership with BVF and RA Capital will consist of common and preferred stock, warrants, and a slice of Concerts royalty agreement with Avanir Pharmaceuticals for AVP-786. BVF and RA will both receive 16.25M in common stock equivalents with warrants to purchase a further 8.13M in common stock.

CNCE stock is currently pushing towards the $4.00 zone at a current price of $3.67. Annually, Concert Pharmaceuticals is showing a loss of 65.86%. The company saw a plunge in stock earlier this year following a failed Schizophrenia trial.

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Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.