Aytu BioPharma Upsizes $14.4M Stock Offering to Commercialize FDA-Approved Depression Drug

Aytu BioPharma has expanded its public offering to 9.6 million shares of common stock priced at $1.50 per share, aiming to raise approximately $14.4 million, with an option for underwriters to purchase an additional 1.44 million shares. The proceeds will support general corporate purposes, working capital, and the exclusive commercialization of EXXUA, an FDA-approved extended-release treatment for major depressive disorder (MDD) in the U.S. EXXUA, a novel oral selective serotonin 5HT1a receptor agonist, has demonstrated significant efficacy with fewer sexual side effects compared to existing antidepressants and is expected to launch in late 2025. Institutional investors including Nantahala Capital Management and Stonepine Capital Management back the offering, reflecting strong market confidence. Despite mixed valuations, with some estimates projecting a substantial stock price upside while others suggest downside risk, Aytu's recent financial performance shows improved revenues driven by growth in ADHD and pediatric portfolios and positive operational income. The company views the EXXUA licensing as a transformative step aligned with its strategy to focus on differentiated CNS products.