TLDR
- Rani Therapeutics stock jumped 150% in pre-market trading following two major announcements
- The company secured a $60.3 million private placement led by Samsara BioCapital with participation from multiple investors
- Rani signed a licensing collaboration with Chugai Pharmaceutical including $10 million upfront and potential milestone payments up to $175 million
- The Chugai deal includes an option to extend to five additional drug programs, potentially worth over $1 billion total
- The combined funding extends Rani’s cash runway into 2028 and supports continued development of its RaniPill oral drug delivery platform
Rani Therapeutics stock rocketed higher on Friday after the clinical-stage biotherapeutics company announced two deals on the same day. The moves address the company’s financial challenges while opening new partnership opportunities.
Rani Therapeutics Holdings, Inc., RANI
The company revealed a securities purchase agreement with institutional and accredited investors for a private placement. Investors include Executive Chairman Mir Imran and new investor Samsara BioCapital.
Under the placement terms, Rani will sell 42,633,337 shares at 48 cents per share. The company will also issue 82,366,667 pre-funded warrants at the same price.
Each share and pre-funded warrant comes with one warrant to purchase an additional share. These warrants carry an exercise price of 48 cents and can be exercised immediately.
The warrants expire five years after issuance. Rani expects gross proceeds of $60.3 million from this transaction.
The private placement was oversubscribed. Other participants include RA Capital Management, Anomaly, Special Situations Funds, and Invus.
Partnership with Chugai Pharmaceutical
Rani also announced a collaboration and license agreement with Chugai Pharmaceutical. The deal pairs Rani’s RaniPill oral drug delivery system with Chugai’s experimental antibody for rare diseases.
Rani will receive an upfront payment of $10 million. The company could earn up to $75 million in development milestones.
Sales milestones could bring another $100 million. Rani will also receive single-digit royalties on future product sales.
Chugai has an option to extend the partnership to five additional drug programs. Each would operate under similar terms.
If all options are exercised, the total agreement value could exceed $1 billion. This structure allows Chugai to expand the collaboration based on early results.
CEO Talat Imran called the partnership a convergence of Rani’s oral delivery platform technology and Chugai’s expertise. The executive said oral therapies could reduce reliance on injections for patients with chronic and rare conditions.
Financial Position and Stock Performance
The company plans to use net proceeds from the private placement to advance its pipeline using the RaniPill platform. The funding extends Rani’s cash runway into 2028.
Rani stock was up 150.58% in pre-market trading on Friday. This followed a 3.98% decline the previous day.
The shares have fallen 65.63% year-to-date. Over the past 12 months, the stock has dropped 82.43%.
Trading volume spiked on the news. About 70 million shares changed hands compared to a three-month daily average of roughly 318,000 units.
TipRanks‘ AI analyst Spark rates the stock an Underperform with a score of 32 out of 100. The rating cites financial struggles with no revenue and consistent net losses.
Chairman Mir Imran said the fresh capital, combined with proceeds from the Chugai agreement, would position the company with clarity and momentum. The private placement is expected to close around October 21, 2025.
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