New York-based Nuvation Bio, Inc. (NYSE: NUVB) announced the pricing of an upsized convertible senior notes offering totaling USD 250 million, with proceeds allocated primarily to retire existing secured debt and fund general operations as the company advances its commercial-stage oncology portfolio. The offering was upsized from an initially proposed USD 200 million, reflecting investor demand that exceeded the original target.
The convertible senior notes carry a 0.75% coupon per annum, mature on July 1, 2032, and were priced at an initial conversion price of approximately USD 7.84 per share, a 35% premium. Net proceeds are estimated at approximately USD 241.2 million. Nuvation Bio also granted underwriters a 30-day option to purchase up to an additional USD 37.5 million in notes, which would bring potential net proceeds to approximately USD 277.6 million. Proceeds will be used to repay in full all obligations under an existing senior secured loan agreement, among other purposes. Jefferies, Citigroup, and Cantor Fitzgerald acted as joint bookrunning managers; RBC Capital Markets served as bookrunner.
Nuvation Bio's commercial lead asset is taletrectinib (Ibtrozi), a next-generation, brain-penetrant ROS1 inhibitor approved by the US FDA in June 2025 for locally advanced or metastatic ROS1-positive non-small cell lung cancer across lines of therapy. Taletrectinib was acquired via the April 2024 all-stock acquisition of AnHeart Therapeutics. Nuvation is also developing safusidenib, a brain-penetrant IDH1 inhibitor in development for IDH1-mutant glioma, alongside an early-stage drug-drug conjugate program.
The Nuvation Bio convertible notes offering is structured to retire the senior secured loan from Sagard Healthcare Partners, which was part of a USD 250 million non-dilutive financing arranged in March 2025 to fund US commercialization of taletrectinib following FDA approval. Retiring that facility with lower-coupon convertible debt — at 0.75% versus the royalty-linked structure of the Sagard arrangement — reduces the ongoing cost of capital and removes secured claims on company assets, providing greater financial flexibility as taletrectinib ramps commercially.