DENVER, Colo. (247marketnews.com) -- PDS Biotech (NASDAQ:PDSB) is making a high-stakes bet on one cancer drug, and it has just brought a heavyweight investor into the story.
The company announced up to $22.55 million in PIPE financing led by Nant Capital, the investment vehicle associated with physician-scientist and biotech entrepreneur Dr. Patrick Soon-Shiong. Under the deal, Soon-Shiong is expected to join PDS Biotech’s board, provided Nant maintains the required ownership threshold. The initial financing is expected to provide approximately $11.55 million, with another $11 million tied to the submission of a registrational Phase 3 protocol for PDS0301 to the FDA. The initial closing is expected around September 11, subject to customary conditions.
For PDSB, this is about more than fresh capital. It is a major vote of confidence in PDS0301, the company's tumor-targeted IL-12 immunocytokine, at a moment when PDS is dramatically narrowing its strategy.
“We believe that the ongoing trials of PDS0301 at the NCI strongly suggest that PDS0301 has the potential to advance the treatment of solid tumors with immunotherapy,” CEO Frank Bedu-Addo said.
Soon-Shiong added, “PDS Biotechnology is developing promising novel cancer vaccines and immunocytokines that have demonstrated the potential to harness the power of the immune system to transform cancer care.”
The enthusiasm is being driven by intriguing Phase 2 data in difficult-to-treat metastatic colorectal cancer. In the NCI-led study, PDS reports a 77.8% objective response rate at six months among nine patients in the Stage 1 cohort, versus 35% in a parallel group without PDS0301, while approximately 80% of patients were alive at 24 months versus approximately 35% in the parallel group. Importantly, the study was not a head-to-head randomized comparison, so those numbers should be viewed as encouraging early evidence rather than proof of efficacy.
The capital raise follows a strategic reset announced in August. PDS has decided to prioritize PDS0301 and stop further internal investment in PDS0101 and its VERSATILE-003 Phase 3 program, while seeking an outside partner to advance PDS0101. The company says it plans to pursue a randomized Phase 2b program for PDS0301 over the next 18 to 24 months.
That focus comes with urgency. PDS reported just $5.6 million in cash as of June 30, 2026, alongside a second-quarter net loss of $9.8 million. The company subsequently disclosed a workforce reduction affecting approximately 36% of employees as it aligns expenses with the PDS0301-focused strategy.
The new financing therefore gives PDS something it badly needs: time and a defined development path.
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