Abeona Therapeutics Inc. (NASDAQ:ABEO) on Monday reported mixed third-quarter financial results while bolstering its rare disease pipeline through an asset acquisition and securing $30 million in private placement funding.
The biopharmaceutical firm surpassed Wall Street expectations with an earnings loss of 8 cents per share, beating the estimated 15-cent loss. However, quarterly revenue of $13.491 million fell short of consensus projections of $16.484 million.
Strategic Asset Acquisition In Eosinophilic Esophagitis
Abeona also agreed to acquire APT-1011, now renamed ABO-801, from Ellodi Pharmaceuticals.
The drug candidate targets eosinophilic esophagitis, a chronic inflammatory esophageal condition affecting approximately 360,000 individuals across the U.S.
The once-daily oral disintegrating tablet delivers fluticasone propionate directly across the esophagus and holds U.S. Food and Drug Administration Orphan Drug designation.
Abeona structured the transaction without upfront cash, issuing $20 million in common shares to Ellodi.
Ellodi also stands to receive $30 million upon regulatory approval, up to $30 million in commercial sales milestones, and tiered royalties.
Following encouraging endoscopic activity in earlier trials, Abeona plans to initiate a Phase 3 clinical trial in mid-2027, projecting topline results by late 2028.
Private Placement Financing And Commercial Execution
To strengthen capital reserves, Abeona secured $30 million in private placement gross proceeds from institutional healthcare investors, including Nantahala Capital, Marshall Wace, and Perceptive Advisors.
The company issued 6.4 million shares at $3.75 each alongside pre-funded warrants for approximately 1.6 million shares to finance pipeline programs and commercial activities.
The company will use the private placement proceeds for general corporate purposes, including funding the development of its product candidate pipeline and supporting commercialization efforts for ZEVASKYN.
Commercial momentum for ZEVASKYN also accelerated, with third-quarter net product revenue rising 18% sequentially to $13.5 million. The company completed six patient treatments during the period, reaching 15 total treatments since launch.
Furthermore, New Technology Add-On Payment status took effect October 1, 2026, establishing supplemental Medicare reimbursement for qualifying hospitals.
Abeona closed the quarter with $134.9 million in cash, cash equivalents, and short-term investments, excluding the subsequent private placement proceeds.
ABEO Price Action: Abeona Therapeutics shares were down 11.51% at $3.69 during premarket trading on Monday, according to Benzinga Pro data.
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