Strong demand allows Xenon, Dianthus to upsize follow-ons: Finance Report

Two biotechs with clinical data this week raised a total of nearly $1.5 billion in follow-ons, taking advantage of rising stock prices to fund their next steps.

A Phase III readout in focal onset seizures drove a 50% rise in the share price of Xenon Pharmaceuticals Inc. (NASDAQ:XENE) on Monday, opening an opportunity for a follow-on offering. Xenon proposed to raise $500 million immediately after the bell on Monday, then priced $650 million worth of shares and warrants Tuesday night. By Thursday evening, the offering’s underwriters had exercised their overallotment option in full, lifting the offering’s total to $747.5 million. Underwriters are J.P. Morgan, Jefferies, TD Cowen, Stifel, RBC Capital Markets, William Blair and Baird...