NEW HAVEN, Conn. - Biohaven Ltd. (NYSE: BHVN), a biopharmaceutical company, has announced the pricing of its public offering of 5,609,757 common shares at $41.00 each, with an aim to raise approximately $230 million before fees and expenses. The transaction is expected to close on April 22, 2024, pending customary closing conditions.
The company has also given underwriters a 30-day option to buy up to an additional 841,463 shares at the offering price minus underwriting discounts and commissions. J.P. Morgan, Morgan Stanley (NYSE:MS), TD Cowen, and Piper Sandler & Co. are leading the offering, with Cantor and Baird serving as book-runners.
Biohaven has stated that the net proceeds from this offering will be allocated for general corporate purposes. This move comes as part of the company's ongoing efforts to advance its portfolio in areas such as immunology, neuroscience, and oncology.
The offering is being made through a prospectus supplement and accompanying prospectus, which can be obtained from the offices of the underwriters. The shares will be issued under an effective shelf registration statement on Form S-3, available on the SEC's website.
This news article is based on a press release statement from Biohaven Ltd. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
In the wake of Biohaven Ltd.'s public offering announcement, a closer look at the company's financial health and market performance through InvestingPro provides a nuanced perspective for investors. The company's resilience is reflected in its balance sheet, holding more cash than debt, an InvestingPro Tip that suggests a robust financial position to weather market fluctuations and fund its operations in immunology, neuroscience, and oncology. This liquidity is further reinforced by the company's liquid assets, which exceed its short-term obligations.
However, it's not all smooth sailing for Biohaven, as the company's stock has seen a significant decline over the past week, with a 17.69% drop, and a 22.4% fall over the last month, according to real-time metrics. This volatility is a point of consideration for potential investors, especially when paired with the company's weak gross profit margins and the expectation that net income will drop this year. These InvestingPro Tips highlight the challenges Biohaven faces, despite its strong cash position.
From a valuation standpoint, Biohaven's market cap stands at $3.6 billion, yet the company is trading at a high Price/Book multiple of 8.43. This might indicate that the stock is priced optimistically relative to its book value. Furthermore, with a negative EBITDA growth of -429.14M USD, the company's profitability concerns are evident, aligning with analysts' anticipation that Biohaven will not be profitable this year. Investors should note these figures when evaluating the company's potential for long-term growth.
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