Biomea Fusion tumbles on deep-discounted $40 mln equity raise

Biomea Fusion's BMEA.O shares down 26.6% to $2.13 before the bell after co raises equity at steep discount

Redwood City, California-based drug developer late Tues announced 20 mln shares, including accompanying warrants and pre-funded warrants, for $40 mln gross proceeds

Offering price of $2 represents 31% discount to stock's last close

Co plans to use net proceeds to fund Phase IIb development of icovamenib in type 2 diabetes and the new drug application filing with U.S. FDA and clinical development of its next-gen, oral-small-molecule GLP-1 receptor agonist candidate, BMF-650, in obesity and diabetes, according to the SEC prospectus

It has ~37.6 mln shares outstanding for $109 mln market cap through Tues

Jefferies sole bookrunner for offering

Through Tues close, BMEA shares have roughly doubled this month. Stock is well off its 52-week intraday high of $13.07 hit in Oct

Of 9 analysts covering BMEA, recommendation breakdown is 7 "strong buy" or "buy" and 2 "hold" and median PT is $17, LSEG data reflects