By Kelly Cloonan

Shares of Connect Biopharma slid after the company said it would sell shares in a private placement for expected gross proceeds of about $20.2 million.

The stock declined 18%, to $2.82, midday Monday. Shares have more than quadrupled over the past year.

The biopharmaceutical company said it entered an agreement with a group of institutional investors to sell 6.1 million shares at $3.25 apiece in a private placement. The price represents a discount to the stock's last closing price of $3.45.

The company plans to use the proceeds from the placement to fund the research and development of its clinical-stage product candidates and other development programs, as well as for working capital and other general corporate purposes. It expects the proceeds will help fund its current operations into the second half of 2027.

The company expects the private placement will close on or about March 31.

The placement was led by Panacea Venture, Connect Biopharma's largest current investor, with participation from other U.S.-based healthcare focused investors, the company said.

The company also separately disclosed results from a Phase 3 study for a potential treatment for moderate-to-severe atopic dermatitis. The drug, called Rademikibart, achieved efficacy across all key endpoints through 52 weeks, the company said.

Additionally, topline data from a Phase 1 study evaluating intravenous Rademikibart in asthma and chronic obstructive pulmonary disease patients showed rapid improvement in lung function, the company said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

March 30, 2026 15:04 ET (19:04 GMT)

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