Shares of Ventyx Biosciences (NASDAQ: VTYX) gained 7% on Monday after the company announced that it has entered into a $27 million strategic investment agreement with Sanofi. Per the terms of the deal, Sanofi will buy 70,601 of Ventyx's Series A non-voting convertible preferred stock for $3.8243 per share. Per the press release, each acquired preferred stock will initially be converted into 100 shares of common stock.
The proceeds from this investment are anticipated to enhance Ventyx's cash reserves. With the addition of these funds, the combined total of current cash, cash equivalents and marketable securities is expected to support the company's planned operations until at least the second half of 2026.
VTYX Grants SNY Exclusive Rights to Investigational Drug
In return for the $27 million equity investment, Ventyx has granted Sanofi the exclusive opportunity to first negotiate certain rights related to the clinical programs of VTYX's investigational candidate, VTX3232. Notably, VTX3232 is an oral, selective, central nervous system-penetrant NLRP3 inhibitor, which is being developed for various neuroinflammatory and neurodegenerative indications, including Parkinson's disease, cardiometabolic disease, Alzheimer's disease ...
