Aclaris Therapeutics Stock Surges On Licensing Deal, $80 Million Private Placement: Retail Sentiment Jumps

Leerink upgraded Aclaris to ‘Outperform’ from ‘Market Perform’ with its price target raised to $7 from $2; Piper Sandler upgraded the company to ‘Overweight’ from ‘Neutral.’

Aclaris Therapeutics ($ACRS) stock rose more than 46% on Tuesday after the clinical-stage biopharmaceutical company entered into a licensing deal with Biosion for rights for two antibody products and announced an $80 million funding, lifting retail sentiment.

Aclaris is focused on developing drugs to treat immuno-inflammatory diseases. The exclusive license agreement with Biosion includes worldwide rights (excluding Greater China) to BSI-045B, a clinical-stage, novel anti-TSLP monoclonal antibody; and BSI-502, a pre-clinical stage novel bispecific antibody directed against “both TSLP and IL4R,” used to treat conditions like atopic dermatitis.  

The private placement includes over 35.55 million shares of common stock at a purchase price of $2.25 per share. The placement is expected to close on or about Nov. 19, 2024, subject to customary closing conditions.

Vivo Capital led the funding, with participation from new and existing investors including Forge Life Science Partners, Rock Springs Capital, RA Capital Management, Adage Capital Partners LP, Decheng Capital, Logos Capital and Samsara BioCapital.

Several brokerages have revised their ratings for Aclaris following the news. Leerink upgraded Aclaris to ‘Outperform’ from ‘Market Perform’ with its price target raised to $7 from $2. The firm cited completion of the company's strategic review, and expects investor focus to shift to its "newly strengthened" immunology-focused pipeline that includes the two in-licensed biologics from discovery-focused Biosion - BSI-045B and BSI-502, The Fly.com reported.

Jefferies also upgraded Aclaris to ‘Buy’ from ‘Hold’ with a price target of $7, up from $2.

Meanwhile, Piper Sandler upgraded the company to ‘Overweight’ from ‘Neutral’ with a price target of $13, up from $3.

Retail sentiment moved from ‘neutral’ (47/100) to ‘extremely bullish’(96/100); message volumes rose to ‘extremely high’ levels from ‘normal’.

“This transformative transaction, which marks the completion of our strategic review process, accelerates our evolution into becoming a leading immunology company with both small and large molecule drugs," Neal Walker, interim CEO and chair of Aclaris, said in a statement.

Net proceeds from the capital raise are expected to fund the research and development of its drug pipeline and for general corporate purposes.

Aclaris stock is up 300% year-to-date.