Cabaletta Bio Stock Jumps: Inside the $150 Million Bet on CABA’s Cell Therapy
Shares of Cabaletta Bio Inc. surged roughly 32% late Monday, buoyed by news of early results from a small cell-therapy trial and the announcement of a $150 million stock sale that counted Eli Lilly among its participants. Trading hit $3.895 on strong volume, topping out intraday at $4.04, according to market data. Share sales tend to draw flak from biotech investors worried about dilution, but Cabaletta’s deal played out differently. The company sold 51.7 million shares at $2.90 apiece—the at-the-market price allowed under Nasdaq rules. Bain Capital Life Sciences, Adage Capital Management, Cormorant Asset Management, along with fresh mutual and sovereign wealth funds, and Eli Lilly all took part.