Faron Pharmaceuticals Oy said on Tuesday it raised about EUR 40 million gross from a rights issue, lifting its cash position to EUR 32 million at the end of June 2026 from EUR 13.5 million a year earlier.
The net proceeds of roughly EUR 32.8 million will fund operations through the anticipated Phase IIb BEXERA readout in late 2027, the company said in an earnings call transcript. Faron’s operating loss narrowed slightly to EUR 11.1 million in the first half of 2026 from EUR 11.8 million in the same period last year, while net assets improved to EUR 11.6 million from a negative EUR 16.7 million.
The Helsinki-based biotech plans to enroll the first patient in the BEXERA trial imminently, following regulatory submissions in the U.S., Europe, and the U.K. Enrollment is targeted to conclude around August 2027, with complete remission data expected in November 2027. The trial evaluates bexmarilimab, a first-in-class anti-CLEVER-1 antibody, in frontline high-risk myelodysplastic syndrome, an orphan indication affecting about 40,000 new patients annually in major U.S. and EU markets.
Historically, frontline patients treated with azacitidine, the market-leading hypomethylating agent, achieve complete remission rates of 16% to 17%, with recent trials reaching up to 20%. Faron’s open-label Phase I/II study reported a 45% complete remission rate, while management aims to double the response rate in the Phase IIb trial. The company expects to improve median survival in the relapse-refractory setting from roughly five to six months to double that duration.
Faron’s cash runway guidance does not assume additional financing, partnership income, or milestone payments. The company held EUR 227.8 million ordinary shares outstanding as of August 2026, with 25 million shares in treasury and 2.2 million options granted under its 2026 share option plan. Shares traded at $0.47, near the low end of a 52-week range of $0.44 to $2.36.
Chief Executive Juho Mattila described bexmarilimab as addressing the core biology of myelodysplastic syndrome, emphasizing its non-cytotoxic mechanism and favorable safety profile. “We're not a cytotoxic agent causing anemia and neutropenia. Actually, it looks like we are making it better,” he said. Chief Financial Officer Jurriaan Dekkers called the first half of 2026 “transformational,” noting the rights issue significantly strengthened the balance sheet to execute the clinical strategy.
