TLDR
- Palisade Bio soars 30% after $138M raise to fund Phase 2 drug trials.
- PALI jumps after big raise; investors back Phase 2 IBD drug trial.
- $138M boost fuels Palisade’s next-gen Ulcerative Colitis drug trial.
- Biotech buzz: Palisade’s PALI-2108 gets cash, backing, and momentum.
- Market rallies as Palisade secures $138M for inflammation drug trial.
Palisade Bio, Inc. (Nasdaq: PALI) closed the regular session with a gain of nearly 30%, ending at $1.70 per share. The rally extended into after-hours trading, pushing the stock up another 6% to $1.80.
Palisade Bio, Inc. (Nasdaq: PALI)
The surge followed the announcement of a $138 million underwritten public offering.
The offering included 197,154,844 shares priced at $0.70 each and was executed with full exercise of the underwriter’s over-allotment option. Ladenburg Thalmann & Co. Inc. managed the offering as the sole book-running manager. The capital will support Palisade’s lead candidate, PALI-2108, through its next clinical phase.
The Securities and Exchange Commission (SEC) declared the registration statement effective on September 30, 2025. An additional filing under Form S-1MEF became effective immediately on October 1, 2025. These filings ensured compliance and enabled Palisade to close the offering efficiently.
Phase 2 Trial Plans Strengthen Momentum
The company will direct the funding toward its Phase 2 clinical development program for PALI-2108. This candidate is a first-in-class PDE4 B/D inhibitor designed to target the ileocolonic region. Palisade aims to treat Ulcerative Colitis and address unmet needs in autoimmune and inflammatory bowel diseases.
With this allocation, Palisade expects to execute a broader and more robust trial strategy. The team will focus on trial enrollment, biomarker validation, and regulatory alignment. The drug’s mechanism supports inflammation resolution, which may offer a better safety profile compared to existing therapies.
The capital enables Palisade to streamline operations and accelerate timelines. It will also support patient recruitment and data collection. The company now holds adequate resources to advance PALI-2108 through key clinical milestones.
Leading Firms Drive Market Optimism
The offering received participation from multiple top-tier healthcare-focused firms. B Group Capital and Columbia Threadneedle Investments led the transaction. Others included RA Capital, Boxer Capital, Janus Henderson, Perceptive Advisors, Adage Capital, and Squadron Capital.
This diverse group brings extensive experience in biotechnology and therapeutics. Their involvement signals strong belief in the long-term commercial viability of PALI-2108. It also underscores confidence in Palisade’s leadership and strategy.
The presence of a large healthcare-focused mutual fund further bolstered credibility. These firms typically perform rigorous due diligence. As a result, their support strengthened Palisade’s financial and scientific position.
Market Reacts with Confidence
The immediate market reaction demonstrated strong approval of the offering’s terms and structure. Despite dilution, demand for shares remained high during trading. The consistent volume and after-hours uptick reflected positive sentiment across the board.
With clinical-stage biotech stocks often sensitive to news, this surge shows renewed momentum for Palisade. The company now prepares to deliver on expectations with a strengthened balance sheet. As trial updates emerge, focus will shift to measurable progress.
Palisade Bio’s leadership now enters a critical execution phase. Strong backing and targeted development plans could position the firm as a leader in inflammatory disease treatment. Markets will watch closely as PALI-2108 moves forward.
