SAT-3247, an oral therapy aimed at restoring muscle repair, is now in Phase 2 testing in children with DMD.
- MSLE stock was down about 2% in overnight trading heading into Tuesday.
- The company completed a $57.2 million public offering to fund its lead drug, SAT-3247, and other research into muscle diseases.
- Early data for SAT-3247 is expected in the second quarter of 2026, following encouraging adult safety results.
Shares of Satellos Bioscience Inc. (MSLE) opened more than 10% above their offering price in the company’s Nasdaq debut on Monday before ending the session more than 3% lower and dipping over 8% in after-hours trading.
Investor sentiment took a hit after the company revealed it had completed an equity raise to fund its Duchenne muscular dystrophy (DMD) program and broader muscle disease research.
MSLE Wraps Up Equity Raise
Satellos said it has completed its underwritten public offering, raising about $57.2 million before fees. The deal included roughly 5.2 million common shares, along with pre-funded warrants for some investors. The shares were sold at $10.1 each. The stock is also listed on the Toronto Stock Exchange under the MSCL ticker.
The company said the funds will mainly support research and development, with a focus on advancing SAT-3247, its lead drug candidate, into mid and late-stage clinical trials. Some of the money will also be used to explore additional muscle-related diseases and support early-stage research programs.
Ahead of the Nasdaq listing, Satellos carried out a 1-for-12 share consolidation in late January. This reduced the total number of shares from about 185.5 million to roughly 15.5 million, helping the stock meet Nasdaq’s listing requirements.
How SAT-3247 Works
SAT-3247 is an oral drug designed to help the body repair and regenerate muscle by targeting a protein called AAK1, which plays a role in muscle stem cell signaling. Unlike gene therapies, SAT-3247 does not depend on fixing the dystrophin gene, meaning it could potentially work for a wide range of Duchenne patients, regardless of their specific genetic mutation.
In December, Satellos received FDA clearance and approvals from global regulators to begin a Phase 2 clinical study of SAT-3247 in 51 children with Duchenne. The study will test safety and measure changes in muscle strength and function. The company expects early trial results in the second quarter of 2026. Earlier studies in adults showed that the drug was well tolerated and associated with improvements in grip strength over a 28-day treatment period.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for Satellos Bioscience was ‘neutral’ amid ‘extremely low’ message volume.
One user said the company’s “Clinical results should be pretty stellar.”
Another user said, “It looks like all went well with the listing. Great work. Let’s see if we get something going this Spring.”
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