Key Takeaways
- Spyre Therapeutics shares fell 14% after the company sold $350 million of stock at $85 a share, about 8% below Monday’s close.
- The deal was upsized from a reported $250 million and adds roughly 5% more stock.
- The raise takes Spyre’s end-of-2025 cash and short-term investments of $757 million to about $1.1 billion, before fees and this year’s spending.
- Spyre has no product revenue, and the money goes toward Phase 3 readiness, including late-stage trials of SPY072 in hidradenitis suppurativa.
Spyre Therapeutics (SYRE) is down 14% today after the clinical-stage biotech sold $350 million of new stock below where it closed on Monday.
The details
Spyre announced the offering after Monday’s close, at 4:01 p.m. ET, with no size given. By 8:13 p.m., it had priced it:
- 4,117,648 shares at $85.00 each, for about $350 million before fees
- Up from $250 million, according to TheFly, which reported the original size
- About 8% below Monday’s close
- A 30-day option for the underwriters to buy up to $52.5 million more
Let’s talk about dilution
Like every biotech, Spyre has paid for its pipeline largely by selling stock, and its diluted share count has climbed from about 7 million in 2023 to 64 million last year…
This deal adds another 4.1 million. Against a company worth about $7.3 billion, $350 million works out to roughly 5% more stock.
That’s a modest bill for a check this size.
The price is the more telling part. Spyre reportedly upsized the deal by 40%, so buyers showed up at about 8% off Monday’s close. The stock is now trading below the $85 deal price, which leaves them underwater on day one.
Win some, lose some.
Why raise now?
A biotech with no product revenue has to keep refilling its cash, and the best time is when the stock is strong. Spyre’s cash pile has grown on the back of raises like this one and sits at $1.1 billion as of last quarter.
Add $350 million, and that’s about $1.5 billion (before fees, and before whatever it spent last quarter). That leaves the company with plenty of runway.
Spyre says the money goes toward Phase 3 readiness across its gastroenterology, rheumatology and dermatology programs, including late-stage trials of SPY072 in hidradenitis suppurativa, a painful, chronic skin disease.
I wrote about a similar setup with Viking Therapeutics (VKTX) a couple of weeks ago, when it sank 12% on an “upsized” $500 million raise.
The upshot
So Spyre is down because it sold roughly 5% more of itself at a discount, and the stock has slipped below the deal price since.
This is the game we play in biotech.
And, since none of Spyre’s drugs is approved yet, this money only pays off if the late-stage trials it funds work out.
So what is Spyre Therapeutics stock actually worth?
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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
