US-based Rein Therapeutics (Nasdaq: RNTX) announced an underwritten public offering of common stock priced at USD 50 million, with proceeds designated to fully fund its ongoing Phase II clinical trial of LTI-03 in idiopathic pulmonary fibrosis (IPF) through completion, alongside working capital and general corporate purposes. The Austin, Texas-based company stated that the net proceeds from this offering, combined with existing cash and cash equivalents, are expected to fund operations into 2028.
The offering comprised 50 million shares of common stock priced at USD 1.00 per share, generating aggregate gross proceeds of USD 50 million prior to underwriting discounts, commissions, and other offering expenses. No warrants were included in the transaction. The company granted the underwriters a 45-day over-allotment option to purchase up to an additional 7.5 million shares at the public offering price, less applicable underwriting discounts and commissions.
Company overview and pipeline
Rein Therapeutics is a clinical-stage biopharmaceutical company focused on orphan pulmonary and fibrosis indications, headquartered in Austin, Texas. The company's current corporate identity emerged from the October 2023 merger between Aileron Therapeutics and Lung Therapeutics, Inc., following which the combined entity rebranded as Rein Therapeutics in January 2025. The merger brought LTI-03 into the portfolio as the lead asset, accompanied by an approximately USD 18 million private placement at the time of the transaction.
LTI-03 is a synthetic peptide with a dual mechanism of action targeting alveolar epithelial cell survival and inhibition of profibrotic signaling, and it carries Orphan Drug Designation in the US for IPF. The proceeds from the current offering are directed primarily toward completing the ongoing Phase II trial of LTI-03 in IPF. The press release does not disclose a specific timeline for top-line data from this trial.