aibioALX Oncology raises $150 million at $1.57 a share, led by RA Capital and TCGX
Tickers ALXO
ALX Oncology priced 76,979,112 shares and pre-funded warrants for 18,574,120 more, at $1.57 a share, after a year of failed or dropped combination trials and a narrower focus on its CD47 drug evorpacept.
Key facts
- Company
- ALX Oncology Holdings Inc. (NASDAQ: ALXO)
- News type
- Financings
- Primary source
- ALX Oncology Holdings
ALX Oncology Holdings Inc. (ALXO) priced an underwritten offering on January 30, 2026 of 76,979,112 common shares at $1.57 each and pre-funded warrants to buy 18,574,120 shares at $1.569 each, according to a Form 8-K. Gross proceeds are expected to be approximately $150 million, before underwriting discounts and commissions and other offering expenses, and excluding the exercise of any pre-funded warrants. The company is the only seller.
Banks, counsel and terms
The company signed an underwriting agreement on January 30 with Piper Sandler & Co., UBS Securities LLC and Wells Fargo Securities, LLC as representatives of the several underwriters. The offering is expected to close on February 2, 2026, subject to customary closing conditions. Wilson Sonsini Goodrich & Rosati, P.C. gave the legal opinion on the shares, the pre-funded warrants and the shares underlying them. The deal is made under an effective Form S-3 shelf registration, File No. 333-285620.
Each pre-funded warrant has an exercise price of $0.001 per share, exercisable in cash or on a cashless basis. A holder cannot exercise if it would push the holder past 4.99% or 9.99% ownership, a limit the holder can raise to no more than 19.99% on at least 61 days' notice. The 8-K does not name the buyers, does not say how the money will be used, and gives no cash balance for the company. It points readers to the risk factors in the 10-Q filed November 7, 2025.
A hard 2025
The pricing follows a rough run for the lead drug. In its first-quarter 2025 update, released May 8, 2025, the company said the Phase 2 ASPEN-03 and ASPEN-04 trials, which tested evorpacept with a checkpoint inhibitor, did not meet their primary endpoints. It said efficacy data did not support moving the combination with Merck's KEYTRUDA (pembrolizumab) into a registrational study.
The same update said the FDA told ALX that ASPEN-06, a Phase 2 gastric cancer trial, was not eligible for submission for accelerated approval because ENHERTU is available. A Phase 3 trial against ENHERTU would be needed. ALX said it would not pursue a U.S. registrational path with a Phase 3 trial in gastric cancer and would consider development partnerships for that program. It also dropped the combination of evorpacept with PADCEV in urothelial cancer after a final analysis of ASPEN-07 showed the addition of evorpacept did not meet the bar for improved efficacy.
What the company points to next
The company said it was focused on evorpacept plus anti-cancer antibodies. It cited a Phase 1 trial with rituximab and lenalidomide in B-cell non-Hodgkin lymphoma, run at MD Anderson, where complete responses occurred in 83% of patients with indolent relapsed or refractory disease against a 34% historical rate with lenalidomide and rituximab alone. That is a Phase 1 result compared with historical data, not a randomized comparison. It also described a Phase 2 ASPEN-Breast trial with HERCEPTIN and a Phase 1 ASPEN-CRC trial with ERBITUX and FOLFIRI, with first patient dosing anticipated for mid-year 2025.
ALX also described ALX2004, an EGFR-targeted antibody-drug conjugate it designed in-house. The FDA cleared its IND, and the company said Phase 1 trials were expected to begin in mid-2025, with initial safety data available in 1H 2026. It said data milestones across its three clinical programs were expected in 2026, and that streamlining had extended its cash runway into Q4 2026 as of that May update.
The company's annual report for 2024 describes ALX as a clinical-stage immuno-oncology company developing therapies that block the CD47 immune checkpoint. Evorpacept is its lead candidate and was in multiple Phase 1 and 2 trials. The company says it is designed to avoid the hematologic toxicities of other CD47 approaches, a claim it makes about its own drug.
Dilution
At $1.57 a share, the offering adds a large number of shares and pre-funded warrant shares, which dilutes existing holders. The 8-K gives no share count before or after the offering, so the size of the dilution cannot be stated from it.