The company has not yet disclosed the volume of shares for sale or the target price, though the filing with the Securities and Exchange Commission confirms the inclusion of pre-funded warrants and a 30-day option for underwriters to purchase additional stock. Investors reacted to the dilution risk immediately, sending shares down 4.6% to $30 in post-market trading after the announcement.

Proceeds from the offering are earmarked for clinical trials and pre-commercial preparations for NGN-401, a one-time gene therapy intended to treat Rett syndrome. This rare neurodevelopmental disorder impacts approximately one in 10,000 live female births globally. The capital injection arrives as the company manages rising costs; Neurogene posted a first-quarter loss of $30.9 million, or $1.39 per share, widening from a $22.6 million loss during the same period last year.