Aptevo Therapeutics Inc. (Nasdaq: APVO) has successfully closed a $2.1 million financing round through a combined registered direct offering and concurrent private placement, the company announced on April 4, 2025. The Seattle-based clinical-stage biotechnology company will use the funds to advance its pipeline of novel immune-oncology therapeutics developed from its proprietary ADAPTIR™ and ADAPTIR-FLEX™ platform technologies.
The financing consisted of 1,764,710 shares of common stock priced at $1.19 per share in a registered direct offering, along with warrants to purchase up to 3,529,420 additional shares in a concurrent private placement. The warrants carry an exercise price of $1.19 per share and will become exercisable upon stockholder approval, with a five-year term from the initial exercise date.
Roth Capital Partners acted as the exclusive placement agent for the transaction, which closed on April 4, 2025.
Funding to Advance Clinical Pipeline
Aptevo intends to allocate the net proceeds toward the continued clinical development of its product candidates, working capital, and other general corporate purposes. The company's pipeline includes two clinical-stage candidates and three preclinical programs targeting various oncology indications.
"This financing strengthens our ability to advance our innovative bispecific immunotherapies through clinical development," said a company representative. "Our focus remains on developing novel treatments that can potentially transform outcomes for cancer patients."
Lead Clinical Programs
Aptevo's lead clinical candidate, mipletamig, is currently being evaluated in the RAINIER Phase 1b/2 trial for frontline acute myeloid leukemia (AML) in combination with the standard-of-care regimen of venetoclax plus azacitidine. Mipletamig has received orphan drug designation for AML from the FDA, providing certain development incentives.
The company's second clinical candidate, ALG.APV-527, is being co-developed with Alligator Bioscience. This bispecific conditional 4-1BB agonist is designed to activate only upon simultaneous binding to 4-1BB and 5T4, a tumor-associated antigen. ALG.APV-527 is currently in Phase 1 clinical trials for the treatment of multiple solid tumor types likely to express 5T4.
Platform Technologies
Aptevo's pipeline candidates are derived from the company's proprietary ADAPTIR® and ADAPTIR-FLEX® platforms, which enable the creation of novel bispecific antibodies. These platforms allow for the development of therapeutics with different mechanisms of action designed to target a range of solid tumors and hematological malignancies.
The ADAPTIR and ADAPTIR-FLEX technologies are engineered to create bispecific antibodies that can simultaneously engage multiple targets, potentially offering advantages over conventional monotherapies in treating complex diseases like cancer.
Warrant Amendments
In addition to the new financing, Aptevo also amended certain existing warrants that were previously issued on December 12, 2024. These warrants, which originally allowed for the purchase of up to 1,647,088 shares at an exercise price of $9.53 per share, have been modified to reduce the exercise price to $1.19 per share. Like the new warrants, they will become exercisable upon stockholder approval and will expire five years from that date.
Market Context
The financing comes at a time when many clinical-stage biotechnology companies are facing challenging capital markets. For companies like Aptevo, with multiple clinical and preclinical programs requiring significant investment, securing additional funding is crucial to maintain momentum in drug development.
The immune-oncology space remains highly competitive but continues to attract investment due to the potential for novel immunotherapies to address significant unmet needs in cancer treatment. Bispecific antibodies, in particular, have shown promise in clinical settings by engaging the immune system to target cancer cells more effectively than traditional approaches.
As Aptevo advances its clinical programs, investors and the oncology community will be watching for data readouts that could validate the company's platform technologies and therapeutic approach.
