Tango Therapeutics, Inc. (NASDAQ: TNGX), a clinical-stage
biotechnology company committed to discovering and delivering the
next generation of precision cancer medicines, has agreed to sell
approximately 15.5 million shares of its common stock (“Common
Stock”) (or pre-funded warrants (“Pre-Funded Warrants”) in lieu
thereof) to a select group of institutional and accredited
healthcare specialist investors in a private investment in public
equity (PIPE) financing, at a per share price of $5.15. The
Pre-Funded Warrants will have an exercise price of $0.0001 per
share of common stock, will be immediately exercisable and will
remain exercisable until exercised in full. The financing is
expected to close on Friday, August 11, 2023, subject to customary
closing conditions. Gross proceeds from the private placement are
anticipated to be approximately $80 million, before deducting any
offering-related expenses.
The financing was led by Nextech with participation from
Boxer Capital, Bain Capital Life Sciences, Casdin Capital, EcoR1
Capital, Southpoint Capital, Third Rock Ventures and a large
institutional investor.
“We are proud to have Nextech as a new investor, and to receive
additional support from an outstanding group of current investors
to further our mission to develop novel precision oncology
treatments. This financing underscores the confidence in our
near-term clinical programs, and our state-of-the-art target
platform to discover and develop new drugs for people with cancer,”
said Barbara Weber, M.D., President and Chief Executive Officer of
Tango Therapeutics. “The additional funding strengthens our balance
sheet at a time of strong momentum. Our two PRMT5 inhibitors are
currently in dose escalation, and we recently demonstrated
proof-of-mechanism for our lead program, TNG908. In addition, we
have initiated the phase 1/2 clinical trial for TNG260, in
combination with pembrolizumab in patients with checkpoint
inhibitor resistant STK11-mutant cancers, and plan to initiate a
fourth clinical trial in 2024.”
“Becoming an investor in Tango Therapeutics is consistent with
Nextech’s core investment strategy. Tango is a leader in developing
novel precision oncology programs based on synthetic lethality –
all of which have the potential to address significant patient
populations across multiple cancer types,” said Kanishka Pothula,
Partner at Nextech. “We look forward to working closely with the
exceptional team at Tango as these potentially transformative
treatments evolve.”
Proceeds from the financing are expected to enable rapid
expansion across multiple tumor types for the TNG908 and TNG462
PRMT5 programs, as well as maintain funding through
proof-of-concept for each of its clinical-stage programs as the
Company awaits clinical data. Current cash, cash equivalents and
marketable securities, in addition to proceeds from the financing,
is expected to be sufficient to fund operations into 2026.
The securities sold in this PIPE, including the shares of common
stock underlying the Pre-Funded Warrants, are being made in a
transaction not involving a public offering and have not been
registered under the Securities Act of 1933, as amended, and may
not be offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements. Pursuant to the securities purchase
agreement, the Company has agreed to file a registration statement
with the Securities and Exchange Commission registering the resale
of the securities sold in the PIPE.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction. Any offering of the Common
Stock or Pre-Funded Warrants described above under the resale
registration statement will only be by means of a prospectus.
About Tango TherapeuticsTango Therapeutics is a
clinical-stage biotechnology company dedicated to discovering novel
drug targets and delivering the next generation of precision
medicine for the treatment of cancer. Using an approach that starts
and ends with patients, Tango leverages the genetic principle of
synthetic lethality to discover and develop therapies that take aim
at critical targets in cancer. This includes expanding the universe
of precision oncology targets into novel areas such as tumor
suppressor gene loss and their contribution to the ability of
cancer cells to evade immune cell killing. For more information,
please visit www.tangotx.com.
Forward-Looking StatementsCertain statements in
this press release may be considered forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended. Forward-looking statements generally relate to
future events, Tango’s future operating performance and goals, the
anticipated benefits of therapies and combination therapies (that
include a Tango pipeline product), Tango’s expectations, beliefs
and development objectives for Tango’s product pipeline and
clinical trials. In some cases, you can identify forward-looking
statements by terminology such as “may”, “should”, “expect”,
“intend”, “will”, “goal”, “estimate”, “anticipate”, “believe”,
“predict”, “designed,” “potential” or “continue”, or the negatives
of these terms or variations of them or similar terminology. For
example, implicit or explicit statements concerning the following
include or constitute forward-looking statements: the PIPE
financing is expected to close on Friday, August 11, 2023 and gross
proceeds are anticipated to be approximately $80 million, before
deducting any offering-related expenses; this financing underscores
the confidence in Tango’s near-term clinical programs and
state-of-the-art target platform to discover and develop new drugs
for people with cancer; the financing comes at a time of strong
momentum; the Company plans to initiate a fourth clinical trial in
2024; Tango has the potential to address significant patient
populations across multiple cancer types; Tango’s has potentially
transformative treatments that will evolve; anticipated use of
proceeds from the financing (the Company can maintain funding
through proof-of-concept for each of its clinical-stage programs);
current cash, cash equivalents and marketable securities, in
addition to proceeds from the financing, is expected to be
sufficient to fund operations into 2026; and; the expected benefits
of the Company's development candidates and other product
candidates (as monotherapies or in combination). Such
forward-looking statements are subject to risks, uncertainties, and
other factors which could cause actual results to differ materially
from those expressed or implied by such forward-looking statements.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by Tango and its
management, are inherently uncertain. New risks and uncertainties
may emerge from time to time, and it is not possible to predict all
risks and uncertainties. Factors that may cause actual results to
differ materially from current expectations include, but are not
limited to: the financing may not close due to failure to satisfy
closing conditions (among other reasons); events may arise int eh
future that require the proceeds to be spent in ways other than
anticipated; Tango has limited experience conducting clinical
trials (and will rely on a third party to operate its clinical
trials) and may not be able to commence the clinical trial
(including opening clinical trial sites, dosing the first patient,
and enrolling and dosing an adequate number of clinical trial
participants) when expected, may not be able to continue dose
escalation on anticipated timelines, and may not generate results
(including final or initial safety, efficacy data and
proof-of-mechanism and proof-of-concept) in the anticipated
timeframe (or at all); benefits of product candidates seen in
preclinical analyses may not be evident when tested in clinical
trials or when used in broader patient populations (if approved for
commercial sale); Tango’s pipeline products may not be safe and/or
effective in humans; addressable patient populations may be smaller
than expected; Tango has a limited operating history and has not
generated any revenue to date from product sales, and may never
become profitable; other companies may be able to identify and
develop product candidates more quickly than the Company and
commercially introduce the product prior to the Company; the
Company’s proprietary discovery platform is novel and may not
identify any synthetic lethal targets for future development; the
Company may not be able to identify development candidates on the
schedule it anticipates due to technical, financial or other
reasons; the Company may not be able to file INDs for development
candidates on time, or at all, due to technical or financial
reasons or otherwise; the Company may utilize cash resources more
quickly than anticipated; Tango will need to raise capital in the
future and if we are unable to raise capital when needed or on
attractive terms, we would be forced to delay, scale back or
discontinue some of our development programs or future
commercialization efforts (which may delay filing of INDs, dosing
patients, reporting clinical trial results and filing new drug
applications); we may be unable to advance our preclinical
development programs into and through the clinic for safety or
efficacy reasons or commercialize our product candidates or we may
experience significant delays in doing so as a result of factors
beyond Tango’s control; Tango’s approach to the discovery and
development of product candidates is novel and unproven, which
makes it difficult to predict the time, cost of development, and
likelihood of successfully developing any products; Tango may not
identify or discover additional product candidates or may expend
limited resources to pursue a particular product candidate or
indication and fail to capitalize on product candidates or
indications that may be more profitable or for which there is a
greater likelihood of success; our products candidates may cause
adverse or other undesirable side effects (or may not show
requisite efficacy) that could, among other things, delay or
prevent regulatory approval; our dependence on third parties for
conducting clinical trials and producing drug product; our ability
to obtain and maintain patent and other intellectual property
protection for our technology and product candidates or the scope
of intellectual property protection obtained is not sufficiently
broad; and delays and other impacts on product development and
clinical trials from the COVID-19 pandemic. Additional information
concerning risks, uncertainties and assumptions can be found in
Tango’s filings with the SEC, including the risk factors referenced
in Tango’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, as supplemented and/or modified by its most
recent Quarterly Report on Form 10-Q. You should not place undue
reliance on forward-looking statements in this presentation, which
speak only as of the date they are made and are qualified in their
entirety by reference to the cautionary statements herein. Tango
specifically disclaims any duty to update these forward-looking
statements.
Investor Contact:Sam Martin/Andrew VulisArgot
Partnerstango@argotpartners.com
Media Contact:Amanda GalgaySVP, Corporate
Communications, Tango Therapeuticsmedia@tangotx.com
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