THOUSAND OAKS, Calif. - Atara Biotherapeutics, Inc. (NASDAQ:ATRA), a pioneer in T-cell immunotherapy, announced a registered direct offering expected to close around September 5, 2024. The company will issue 758,900 shares of common stock at $8.25 each and pre-funded warrants for 3,604,780 shares at $8.2499 each, amounting to a gross proceed of $36 million. This capital raise is priced at a 15% premium over Atara's recent volume-weighted average price and includes top institutional investors and a new strategic biotech entity.
With this financial boost, Atara aims to extend its cash runway into 2027, supporting the anticipated U.S. approval of its T-cell therapy product, tab-cel®, and progress of ATA3219. The funds will also back general corporate activities and working capital needs.
Greg Ciongoli, founder and managing partner of Adiumentum Capital Management, will join Atara's Board of Directors in connection with the offering. Pascal Touchon, President and CEO of Atara, expressed optimism about Ciongoli's appointment, citing his extensive investment experience and industry knowledge.
Atara is recognized for its novel allogeneic Epstein-Barr virus (EBV) T-cell platform, which has the distinction of being the first regulatory-approved allogeneic T-cell immunotherapy. The company's therapies are designed for rapid delivery from inventory to treat challenging cancers and autoimmune diseases.
The offering is conducted under a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) and declared effective November 13, 2023. Additional details will be provided in a prospectus supplement to be filed with the SEC.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such offer, solicitation, or sale would be unlawful.
In other recent news, Atara Biotherapeutics has made noteworthy strides in the biopharmaceutical field. The U.S. Food and Drug Administration (FDA) has accepted the company's Biologics License Application (BLA) for tabelecleucel (tab-cel®), a therapy designed to treat Epstein-Barr virus positive post-transplant lymphoproliferative disease. This acceptance may result in a $20 million milestone payment from Pierre Fabre Laboratories, with an additional $60 million contingent upon FDA approval.
In addition, Atara Biotherapeutics has executed a 1-for-25 reverse stock split, reducing the number of outstanding common shares from approximately 122.6 million to around 4.9 million. This action was taken to increase the market price of the company's common stock and meet the continued listing requirements on The Nasdaq Stock Market LLC.
Furthermore, Mizuho Securities has upgraded Atara Biotherapeutics from a Neutral to an Outperform rating, while reducing the price target to $18 from the previous $25. The firm maintains a positive outlook on the company's core T-cell technology, despite the market's lack of enthusiasm.
Finally, Atara Biotherapeutics has reported promising preclinical data on its allogeneic anti-CD19 chimeric antigen receptor (CAR) T-cell therapy candidate, ATA3219. Currently, ATA3219 is under investigation in a Phase 1 trial for relapsed/refractory B-cell non-Hodgkin’s lymphoma.
InvestingPro Insights
As Atara Biotherapeutics gears up for its registered direct offering, the latest data from InvestingPro offers a snapshot of the company's financial health and market performance. With a market capitalization of $35 million, Atara is a relatively small player in the biotech field. Despite experiencing an impressive revenue growth of over 800% in the last twelve months as of Q2 2024, the company's gross profit margin remains in the negative at -201.9%, highlighting challenges in profitability.
InvestingPro Tips suggest that while analysts are expecting sales growth in the current year, they are not confident about the company's profitability, as they do not anticipate Atara will be profitable this year. Moreover, the company's short-term obligations exceed its liquid assets, indicating potential liquidity risks. On the positive side, three analysts have revised their earnings upwards for the upcoming period, providing a glimmer of hope for future financial performance.
Atara's stock has had a significant return over the last week, with an 11.11% price total return, yet it has faced a steep decline over the longer term, with an 80.39% drop in the past year. These metrics may be particularly relevant for investors considering participating in the offering or those looking to understand the company's recent market dynamics. For more detailed analysis and additional InvestingPro Tips, interested parties can explore the full suite of insights on InvestingPro's platform, which includes 13 more tips that could help investors make informed decisions.
The company's next earnings date is slated for November 6, 2024, which will be a critical time for investors to assess Atara's financial trajectory and the impact of its capital-raising efforts.
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