The capital raise was executed through an accelerated bookbuilding procedure that concluded yesterday. Several of the company’s major shareholders, including Hunter Capital and Johannes Schildt, participated in the issue alongside new qualified investors. By choosing a directed issue, SynAct Pharma opted for a method that offers greater speed and lower transaction costs compared to a traditional rights issue, ensuring the company can maintain its operational focus during a period of high clinical activity.
The strengthened balance sheet arrives as the company approaches several value-driving milestones for resomelagon. In early February, the company completed recruitment for the phase IIb ADVANCE study in rheumatoid arthritis. With 246 patients enrolled and topline data expected in the second quarter 2026, preparations for phase III development are now underway.
Maintaining momentum across the pipeline
The new funding ensures that the company can advance its strategy without interruption. Beyond rheumatoid arthritis, the phase II RESPIRE study in respiratory insufficiency is progressing, while patient inclusion for the phase IIa RESOVIR-2 study in dengue fever is expected to begin shortly. Data from both viral-induced inflammation programmes are anticipated in the third quarter 2026.
Together, this sets the stage for the company’s Capital Markets Day in Stockholm on 11 March, where further insights into the development plans and market opportunities will be shared.
Q&A with the CEO
BioStock contacted SynAct Pharma’s CEO, Jeppe Øvlesen, to hear his thoughts on the capital raise and how it strengthens the company’s position ahead of the upcoming clinical milestones.
Why did SynAct choose to strengthen its financial position at this stage?
– We chose to strengthen our balance sheet ahead of a significant clinical milestone to ensure full strategic flexibility during an important phase for the company. Recruitment in our phase IIb ADVANCE study in rheumatoid arthritis is complete, with topline data expected in Q2. We have strong conviction in the study design, including our focus on patients with elevated CRP, which aligns with our understanding of resomelagon’s mechanism of action and prior clinical observations.
– By securing capital now, we position SynAct to engage in strategic discussions from a position of strength – supported by clinical evidence, sufficient time for negotiations, and financial flexibility. This enhances our ability to optimize potential partnership outcomes and maximize shareholder value.
Why raise capital ahead of the ADVANCE phase IIb readout rather than after the data?
– Raising capital ahead of the ADVANCE readout ensures we can enter the data period – and any subsequent partnering discussions – without time pressure or financial constraints. This proactive approach allows us to focus fully on delivering high-quality data while maintaining flexibility to negotiate the right partnership on the right terms and timeline. It reflects disciplined capital management and strengthens our negotiating position.
– We have strong conviction in the potential of resomelagon, and this financing positions SynAct from a place of strength ahead of what we believe could be a value-defining milestone for the company.
How does the SEK 51.9 million capital raise impact SynAct’s runway?
– The capital raise of approximately SEK 51.9 million extends our operational runway into Q3 2027, providing a solid financial foundation as we approach the ADVANCE data readout and the subsequent strategic phase.
– This ensures we can execute our planned development activities and corporate priorities without financial constraints, while maintaining full flexibility in potential partnering discussions. Importantly, it allows us to engage from a position of strength rather than necessity.
– Our capital allocation remains disciplined and milestone-driven, with a clear focus on supporting value-creating activities and safeguarding shareholder interests as we advance the company into its next phase.
How does this capital increase support your strategic positioning and clinical confidence?
– We are building for success and strongly believe in our strategy of targeting patients with above-normal inflammation, measured by CRP levels. This aligns with our understanding of how resomelagon works at a cellular level and is supported by signals observed in previous phase II programs as well as in the ongoing ADVANCE study.
– The capital raise reflects prudent capital management. It allows us to focus on delivering high-quality data and making strategic decisions from a position of strength and flexibility — rather than necessity.
The content of BioStock’s news and analysis is independent, but BioStock’s operations are to some extent financed by companies in the industry. This post refers to a company from which BioStock has received funding.
