Beyond Air (XAIR) Soars 11.29% on $32M Financing Deal to Accelerate Expansion and Clinical Trials

The share price rose to its highest level so far this month today, with an intraday gain of 11.29%. Beyond Air (XAIR) climbed 1.08% in a session marked by renewed investor interest following a $32 million financing agreement announced on November 5. The deal with Streeterville Capital includes a $12 million promissory note with a 15% annual interest rate and a $20 million equity line of credit, aimed at accelerating commercial expansion and clinical development for its nitric oxide-based therapies.

The financing, which extends the company’s cash runway into 2027, supports the launch of a second-generation LungFit PH device by late 2026 and pre-clinical trials for applications in viral pneumonia, neurology, and oncology. A key catalyst was the FDA’s Orphan Drug Designation for BA-101 in glioblastoma, granting potential market exclusivity and tax benefits. Expansion agreements for LungFit PH in Japan and five other countries in August 2025 also broadened its geographic reach. However, the stock’s premarket surge of 10.2% was followed by a post-market decline of 10.22%, reflecting lingering skepticism over the company’s financial health.

Investor caution persists despite the funding, as Beyond Air’s metrics remain challenging: a -24.6% gross margin, a -3,306.5% pretax profit margin, and a leverage ratio of 2.8. Quarterly revenue of $1.8 million, while up 157% year-over-year, lags behind cash burn rates and debt obligations. The 15% interest rate on the promissory note and potential dilution from the equity line pose risks to shareholder value. Management’s focus on commercializing LungFit PH and advancing clinical trials will be critical to justify the recent rally, with profitability and regulatory progress serving as key long-term indicators for the struggling biotech.