Palvella Therapeutics, Inc. (NASDAQ: PVLA) completed an underwritten public offering of $150.0 million of its common stock, with an option for underwriters to purchase an additional $22.5 million of shares within 30 days. The offering is being managed by TD Cowen, Cantor, Stifel, Mizuho, LifeSci Capital, Oppenheimer & Co., Canaccord Genuity and H.C. Wainwright & Co., with Lucid Capital Markets, Jones, Clear Street and Craig‑Hallum as co‑managers.
The net proceeds will be directed toward advancing Palvella’s QTORIN® platform, specifically the rapamycin and pitavastatin programs, and toward working capital and general corporate purposes, including research and development. The capital injection is expected to extend the company’s cash runway into the second half of 2027, providing the financial flexibility needed to pursue regulatory submissions and potential commercialization of its rare‑disease therapies.
Palvella’s QTORIN® rapamycin has received Breakthrough Therapy designation for microcystic lymphatic malformations and has recently reported positive Phase 3 SELVA topline results that met primary and key secondary endpoints with a p‑value of less than 0.001. The strong data, combined with the company’s focus on rare skin and vascular malformations, has reinforced investor confidence in the platform’s potential to address unmet medical needs. The public offering therefore supports the company’s strategy to move the rapamycin program toward FDA submission in the second half of 2026 and to prepare for possible U.S. commercialization in 2027.
Financially, Palvella reported a negative EBITDA of $31.66 million and a current ratio of 6.49 as of the latest reporting period. With limited cash reserves, the equity raise is a strategic move to avoid additional debt financing and to maintain a robust balance sheet while the company continues to invest heavily in late‑stage clinical development.
Investors reacted positively to the announcement, reflecting confidence in the company’s clinical progress and the capital raise’s ability to sustain its development pipeline. The market’s favorable response underscores the importance of the funding for Palvella’s trajectory toward regulatory approval and commercialization of its QTORIN® products.
The $150 million equity offering positions Palvella to advance its lead candidates, strengthen its financial position, and maintain momentum in a therapeutic area with significant unmet need. By extending its runway and reducing reliance on debt, the company is better positioned to navigate the regulatory pathway and capitalize on the potential market for its rare‑disease therapies.
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