Herantis strengthened its financial position via directed share issue

Translation: Original published in Finnish on 2/11/2026 at 9:20 am EET.

Herantis announced late on Wednesday that it had successfully completed a directed share issue of 4.2 MEUR. The funding will be used to prepare for the Phase II trial of the HER-096 drug candidate and, according to the company, supports ongoing partnership negotiations. Bridge financing provides the company with leeway at a time when biotechnology stocks have been under pressure in the market. We will incorporate the details of the directed share issue into our forecasts at the latest in connection with the financial statements report.

The financing round strengthens the balance sheet for Phase II preparations

Herantis announced late Wednesday that it had completed a directed share issue, through which the company raised gross proceeds of 4.2 MEUR. The issue will comprise 2,409,000 new shares, representing around 9.09% of all the company's shares after the issue. The subscription price for the shares was EUR 1.75, which corresponds to a discount of some 15.7%. The company emphasized the success of the offering despite the recent market volatility in the life science sector. Sector stocks have been under pressure globally in recent weeks, and particularly on Nasdaq Helsinki in recent days, which may pose challenges for companies reliant on external financing. In our view, the completed share issue was welcome news, as it clarifies the company's short-term financial situation.

The financing solution was expected and secures continuity

The financing round did not come as a surprise, as the company's previous estimates indicated that its cash reserves would have been sufficient until Q2'26. The company intends to use the raised funds for the preparation of the HER-096 drug candidate's Phase II study, advancing partnership negotiations, and general financing needs. The company aims to initiate the Phase 2 study during 2026, for which it will require significant additional funding. We estimate the cost of the study to be around 15-20 MEUR. The sufficiency of the funding now secured depends entirely on the start of the upcoming trial. Herantis' administrative costs are quite moderate, so we believe the increased flexibility provided by the strengthened cash position is significant. The company aims to secure a partnership agreement with a larger pharmaceutical company during the spring to finance future studies. We also believe that equity financing is a realistic option. The company has an existing investment commitment of around 12 MEUR from the EIC Fund, which can cover a maximum of one-third of the financing to be raised.