As the U.S. obesity drug market grows more crowded and capital-intensive, smaller biotech companies are increasingly relying on creative financing to stay in contention. MetaVia, a U.S.-based biotechnology company backed by South Korean pharmaceutical group Dong-A ST, is the latest to take that route.
MetaVia said it raised about $8.1 million in gross proceeds through a registered public offering priced at $3.10 a share. The deal combined common stock with Series C and Series D warrants, a structure that gives the company immediate funding while preserving the option to raise significantly more capital if its clinical program advances as planned.
The proceeds will be used for working capital and continued development of DA-1726, MetaVia’s lead obesity drug candidate. The offering was led by Ladenburg Thalmann as sole bookrunner and is expected to close in mid-January.
Although the initial raise is small by U.S. biotech standards, the warrant structure is central to the strategy. If all Series C and D warrants are exercised, MetaVia could secure up to an additional $24 million. The Series D warrants include a call option tied to positive Phase 1b data for DA-1726, effectively linking clinical progress to future financing capacity.
DA-1726 is designed as a dual-agonist therapy that targets both GLP-1 and glucagon receptors, an approach aimed at combining appetite suppression with increased energy expenditure. The mechanism reflects broader industry efforts to move beyond first-generation GLP-1 drugs that now dominate the obesity market. In early-stage studies, MetaVia reported weight loss, improved glycemic control and reductions in waist circumference.
The company is also developing vanoglifel, known as DA-1241, for metabolic dysfunction–associated steatohepatitis, or MASH. The candidate demonstrated liver-directed and metabolic effects in a Phase 2a trial, providing longer-term optionality beyond the obesity program.
The financing highlights how emerging biotechs are adapting to tighter funding conditions. Rather than securing large sums upfront, companies like MetaVia are structuring deals that stretch limited capital while positioning themselves to raise more if clinical milestones are met—an increasingly common tactic in a market where investors are demanding clearer links between data and dollars.
