Australian company PYC Therapeutics (ASX:PYC) has announced a capital raising of up to $653 million, a scale of funding rarely seen on the Australian Securities Exchange and one that places the Perth-founded biotech among a small group of local life sciences firms able to attract global capital at this magnitude.
For an Australian-listed biotech, the size of the raise is significant. The funding materially exceeds the market capitalisation of many ASX healthcare peers and underscores the growing willingness of global specialist investors to back Australian innovation when supported by strong science and a credible development strategy. If completed as planned, the raise will see PYC funded through to 2030, a level of balance-sheet certainty that is uncommon even among mid-cap international biotechs.
The fundraising comprises two components. A $128 million placement to leading US specialist life sciences investors and a $525 million entitlement offer that allows existing eligible shareholders to participate on the same terms.
New shares will be issued at $1.50, representing only a modest discount to recent trading levels, reflecting strong demand despite the size of the transaction.
Significantly, PYC has already secured binding commitments for approximately $560 million, including up to $200 million in underwriting support from existing large shareholders. Subject to conditions, the company expects to raise at least $600 million.
The proceeds will fund four drug development programs through critical human efficacy milestones, spanning polycystic kidney disease, rare neurodevelopmental disorders, inherited retinal disease, and optic neuropathy. Each program targets diseases with high unmet need and clear regulatory pathways, with multiple candidates expected to enter or advance through registrational trials in the coming years.
From a market perspective, the transaction stands out not only for its dollar value, but for what it signals about the maturation of Australia’s biotech sector. The participation of multiple top-tier US investors positions PYC differently from many domestic peers, effectively bridging the gap between Australian innovation and international capital markets.
Chief Executive Officer Dr Rohan Hockings said the support from new and existing investors reflects confidence in the company’s pipeline and its potential to deliver disease-modifying therapies in areas with limited or no treatment options. With funding secured well beyond the next series of clinical read-outs, PYC now has the financial runway to pursue long-term value creation without the near-term dilution risk that often constrains Australian biotechs.