Beyond Air raises up to $30.1m to fund LungFit PH II launch

Beyond Air priced an at-the-market private placement to fund the commercial launch of its second-generation nitric oxide delivery system, pending FDA approval.

The Biotech Times Editorial Team By The Biotech Times Editorial Team
A gloved hand holds a white medical device with a needle positioned over a blue-draped patient in a brightly lit clinic room with a window.

Beyond Air has entered into a securities purchase agreement for a private placement expected to raise up to $30.1 million in gross proceeds, with the capital earmarked for the planned commercial launch of its second-generation LungFit PH system, subject to regulatory clearance.

The NASDAQ-listed medical device and biopharmaceutical company priced the offering at $5.66 per share for institutional investors and $5.76 per share for participating directors and officers, including chief executive Robert Goodman and chief financial officer Dan Moorhead. The financing was led by institutional healthcare investors, with Cantor acting as lead placement agent and Citizens Capital Markets and Lake Street serving as co-agents. Closing is expected on or around 31 July 2026.

Deal structure

The transaction involves 167,011 shares of common stock alongside pre-funded warrants covering up to 1,638,835 shares, each priced at $5.6599. Investors also receive two warrant tranches: Series A warrants, which expire either one year from issuance or 45 days after any FDA approval of the pending premarket approval (PMA) supplement for LungFit II, and Series B warrants with a five-year term. Both series carry an exercise price of $5.51 per share and cover up to 1,805,846 shares each. The $30.1 million headline figure assumes full cash exercise of both warrant tranches, which the company acknowledges is not guaranteed.

Goodman said the financing provides "the capital and financial flexibility to execute the planned commercial launch" of LungFit PH II once regulatory approval is secured. Beyond Air's first-generation LungFit PH already holds FDA approval and CE Mark for treating persistent pulmonary hypertension of the newborn.

Market context and regulatory path

Beyond Air's LungFit platform is designed to generate nitric oxide on demand from ambient air, removing the need for large high-pressure cylinders. The company positions this as a meaningful operational improvement for hospital settings, reducing storage requirements and eliminating nitrogen dioxide purging steps. Investigational-stage applications extend to high-concentration NO delivery for severe acute lung infections such as COVID-19 and bronchiolitis, as well as chronic refractory infections including non-tuberculous mycobacteria in a home-care context, though none of these indications are currently approved.

The inhaled nitric oxide market is not without established competition. Mallinckrodt's INOmax has long held a dominant position in neonatal pulmonary hypertension, and cylinder-free delivery has become a genuine commercial differentiator as hospitals focus on supply chain simplification. Beyond Air's PMA supplement for the second-generation device is under FDA review, and the accelerated expiry provision tied to Series A warrants effectively creates a financial incentive for investors to monitor the regulatory timeline closely.

The company's intention to use net proceeds for working capital and general corporate purposes, beyond the stated launch preparation, leaves some ambiguity about how aggressively it intends to expand headcount or distribution capacity ahead of any approval. Investors will be watching for the PMA outcome and any guidance on the commercial ramp-up plan as the key near-term catalysts.

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