Two RNA-focused biotechs secured fresh capital this week, as City Therapeutics closed a $99.5 million Series B to advance its RNAi pipeline and Eloxx Pharmaceuticals raised $66 million in a public offering tied to its Nasdaq uplisting.

City Therapeutics closes Series B

City Therapeutics completed a $99.5 million Series B financing led by a syndicate that includes new investors Viking Global Investors and Sofinnova Investments, alongside Casdin Capital, NYBC Ventures, and existing backers including ARCH Venture Partners, Fidelity Management & Research Company, Invus, Slate Path Capital, Rock Springs Capital, and Regeneron Ventures.¹

Proceeds from the funding are expected to be used to advance the company's RNAi pipeline, accelerate its next-generation RNAi engineering platform, and support business development. City Therapeutics recently initiated a Phase I clinical trial of City-Fxi, an RNAi therapy targeting Factor XI for thromboembolic diseases, and has announced positive preclinical data for City-RBP4, a potentially first-in-class RNAi therapy for Stargardt disease, a rare inherited retinal condition. The company says it expects to advance two programs to clinical stage this year, including City-RBP4.¹

"With this capital, we are well-positioned to move two programs to clinical stage this year and continue to validate our innovative RNAi platform," said Andy Orth, chief executive officer of City Therapeutics. "We have achieved multiple important milestones in the two years since our Series A financing, including advancing CITY-FXI to the clinic and completing major strategic collaborations with Bausch + Lomb and Biogen."

John Maraganore, PhD, co-founder and executive chairman of City Therapeutics, said the financing reflects the company's progress in expanding RNAi beyond its traditional applications. "Our innovative approach is expanding the reach of RNAi medicines into new programs and tissue types," he said.

As part of the financing, Rohan Nirody of Viking Global Investors and Maha Radhakrishnan of Sofinnova Investments will join the City Therapeutics board of directors as observers.¹

Eloxx Pharmaceuticals prices $66 million offering

In other funding news, Eloxx Pharmaceuticals priced a public offering of approximately 6 million shares and pre-funded warrants at $11.00 per share, expecting to raise $66 million in gross proceeds before underwriting discounts and expenses.²

The offering is expected to close on June 10, 2026, with shares beginning to trade on the Nasdaq Capital Market under the ticker "ELOX" on June 9.

Eloxx is a clinical-stage company developing small molecule product candidates designed to modulate the ribosome and promote readthrough of premature stop codons caused by nonsense mutations, a mechanism that could enable production of full-length, functional proteins in diseases where a single genetic error disrupts protein expression.² The approach has broad potential applicability across rare genetic diseases driven by nonsense mutations.

Leerink Partners and Guggenheim Securities are acting as joint bookrunning managers for the offering, with LifeSci Capital serving as passive bookrunner.

The capital raise and Nasdaq uplisting position Eloxx to advance its pipeline at a time when readthrough therapies are drawing increased attention as a platform approach to rare disease, particularly as gene editing and RNA-based modalities continue to validate the broader category of genetic medicine.²

Sources

1. City Therapeutics Announces $99.5 Million Series B Financing to Advance Next-Generation RNAi Therapeutics City Therapeutics June 8, 2026 https://www.businesswire.com/news/home/20260608486606/en/City-Therapeutics-Announces-%2499.5-Million-Series-B-Financing-to-Advance-Next-Generation-RNAi-Therapeutics
2. Eloxx Pharmaceuticals, Inc. Announces Pricing of $66.0 Million Public Offering and Uplisting to Nasdaq Eloxx Pharmaceuticals https://www.prnewswire.com/news-releases/eloxx-pharmaceuticals-inc-announces-pricing-of-66-0-million-public-offering-and-uplisting-to-nasdaq-302794598.html