Korro Bio Inc. (NASDAQ:KRRO) shares climbed 17% on Monday after the company announced an oversubscribed $85 million private investment in public equity (PIPE) financing.
The financing round was led by new investor Venrock Healthcare Capital Partners and included participation from both new and existing investors such as ADAR1 Capital Management, Affinity Asset Advisors, Balyasny Asset Management, Driehaus Capital Management, Kalehua Capital, Lynx1 Capital Management, Nantahala Capital and New Enterprise Associates.
As part of the subscription agreement, Korro will issue 4,501,928 shares of common stock priced at $11.11 per share, along with pre-funded warrants allowing the purchase of 3,148,836 shares at $11.109 per warrant. These warrants have an exercise price of $0.001 per share. The transaction is expected to close on or around Tuesday, March 10, 2026.
The Cambridge, Massachusetts-based biotechnology company said the net proceeds from the offering, combined with its existing $85.2 million in cash, cash equivalents and marketable securities as of December 31, 2025, are expected to fund operations into the second half of 2028.
The capital will be used to advance key clinical milestones across the company’s pipeline. This includes generating clinical data for KRRO-121, which is being developed to treat hyperammonemia in patients with urea cycle disorders, as well as progressing the company’s GalNAc-conjugated oligonucleotide program targeting alpha-1 antitrypsin deficiency, pending regulatory approvals.
The financing will also support development of Korro’s longevity and liver health program aimed at activating the AMPKγ1 pathway.
Citigroup, together with Cantor, Oppenheimer & Co., and William Blair, is acting as placement agent for the transaction. The securities are being issued in a private transaction that does not involve a public offering and have not been registered under the Securities Act of 1933.