aibioSavara prices $130.0 million stock offering at $4.20 per share
Tickers SVRA
Savara priced 23,809,524 shares at $4.20, below the $4.41 last sale price, and pre-funded warrants for 7,142,857 more. Jefferies, Piper Sandler and Guggenheim Securities are joint book-running managers, and Polsinelli PC is the company's counsel.
Key facts
- Company
- Savara, Inc. (NASDAQ: SVRA)
- News type
- Financings
- Primary source
- Savara, Inc. 424B5 (2025-10-29)
The pricing
Savara Inc. (Nasdaq: SVRA) said on October 29, 2025 that it priced an underwritten public offering of 23,809,524 shares of common stock at $4.20 a share. Certain existing large investors could instead buy pre-funded warrants for 7,142,857 shares at $4.199 each. A pre-funded warrant has an exercise price of $0.001 a share, so the buyer pays nearly the full price up front. Total gross proceeds are $130.0 million before underwriting discounts, and all of the securities are being sold by Savara.
The prospectus supplement gives the last reported sale price on Nasdaq on October 28, 2025 as $4.41, so the offering priced below that level. Underwriting discounts and commissions are $7,800,000 and proceeds to Savara before expenses are $122,192,857. The underwriters have 30 days to buy up to 4,642,857 more shares at the offering price. If they take all of them, discounts rise to $8,970,000 and net proceeds before expenses reach $140,522,857. The offering was expected to close on October 31, 2025, subject to customary conditions.
Banks, counsel and dilution
Jefferies, Piper Sandler and Guggenheim Securities are joint book-running managers. Oppenheimer & Co. is lead manager, and Citizens Capital Markets and H.C. Wainwright & Co. are co-managers. Polsinelli PC passes upon the validity of the securities and other legal matters for Savara, and Cooley LLP acts for the underwriters. Neither the release nor the prospectus names a placement agent or a separate financial advisor.
The prospectus bases its share count on 172,836,922 common shares outstanding at June 30, 2025, and sets 43,622,376 shares issuable on pre-funded warrants outside that figure. Net tangible book value was approximately $108.9 million, or about $0.63 per share, at that date. After the offering it would be approximately $230.5 million, or $1.17 per share, which the prospectus says is an immediate dilution of $3.03 per share to investors buying in this offering.
The drug and the regulatory setback
Savara describes MOLBREEVI, an inhaled recombinant human GM-CSF, as in Phase 3 development for autoimmune pulmonary alveolar proteinosis (aPAP), a rare lung disease. The release states that it is not approved in any indication. The company says lung lavage under general anesthesia is the only available treatment.
The record is mixed. The earlier IMPALA Phase 2/3 trial did not meet its primary endpoint, and the FDA indicated that its data did not provide sufficient evidence of efficacy and safety. The later IMPALA-2 trial enrolled 164 patients. In June 2024 Savara announced it met its primary endpoint, a statistically significant change in DLCO versus placebo at Week 24. SGRQ Total Score also reached significance. SGRQ Activity Score and Week 48 exercise capacity were each only nominally significant. Lung lavage, allowed as rescue treatment, was used by 6 patients on the drug and 11 on placebo.
Savara started a rolling Biologics License Application in December 2024 and completed it on March 26, 2025. In May 2025 the FDA sent a Refusal to File letter. The company says it was not the result of safety concerns and that the FDA did not request or recommend additional efficacy studies. It plans to resubmit in December 2025 and request Priority Review.
Other money and the use of proceeds
On October 29, 2025, Savara also announced a purchase and sale agreement with funds managed by RTW Investments, LP. RTW agreed to pay $75.0 million if the FDA approves MOLBREEVI on or before March 31, 2027, in exchange for U.S. royalties tiered from 7.0% to 1.0% of net sales. Payments end when RTW has received $187.5 million. Savara must use part of that price to repay all outstanding indebtedness, and the agreement limits its ability to borrow more.
The 10-K filed March 27, 2025 describes MOLBREEVI as the sole product candidate, reports significant losses since inception and says a loan agreement contains covenants and that failure to comply could make the debt immediately payable.
Savara says it will use the offering proceeds for general corporate purposes. These include clinical development and regulatory approval work for MOLBREEVI, commercialization infrastructure and supply, launch preparation in the United States and European Union, and general and administrative expenses.