MINNEAPOLIS - Celcuity Inc. (NASDAQ:CELC), a clinical-stage biotechnology firm, has priced an underwritten public offering of 3,871,000 shares of its common stock at $15.50 per share. The offering, exclusively consisting of Celcuity's securities, is anticipated to close around May 31, 2024, subject to customary closing conditions.
The transaction is expected to generate gross proceeds of approximately $60.0 million, before accounting for underwriting discounts, commissions, and other offering expenses. Notable investors participating in the offering include BVF Partners L.P., Vivo Capital, Eventide Asset Management, Samlyn Capital, Driehaus Capital Management, and Blue Owl Healthcare Opportunities.
Celcuity intends to allocate the net proceeds towards working capital and general corporate purposes. These may cover capital expenditures, research and development, clinical trials, and the expansion of its business development activities. Specifically, the funds are earmarked for a planned Phase 3 clinical trial of gedatolisib alongside a CDK4/6 inhibitor and fulvestrant for first-line treatment of patients with HR+/HER2- advanced breast cancer.
With this offering, Celcuity aims to extend its financial runway, anticipating that its current and forthcoming resources will be sufficient to support its operations and capital requirements at least through the second half of 2026.
Leerink Partners, TD Cowen, and Stifel are serving as joint bookrunning managers for the offering. The shares are available pursuant to a Registration Statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC) and declared effective.
Celcuity's primary focus is on the development of targeted therapies for various solid tumor indications. Its leading therapeutic candidate, gedatolisib, is a potent inhibitor that targets both PI3K and mTOR. The company is actively enrolling patients in clinical trials, including the VIKTORIA-1 and CELC-G-201 studies, and is preparing to initiate the VIKTORIA-2 trial in the second quarter of 2025.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities will not be conducted in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
InvestingPro Insights
Celcuity Inc. (NASDAQ:CELC), in its recent move to bolster its financial position through a public offering, has caught the attention of investors and analysts alike. In light of this development, a closer look at the company's financial health and market performance reveals several key insights.
From a fiscal standpoint, Celcuity holds a market capitalization of approximately $463.45 million, reflecting its standing in the biotechnology sector. Notably, the company's cash reserves are robust, with InvestingPro Tips indicating that it holds more cash than debt on its balance sheet, which is a positive indicator for investors considering the company's financial resilience.
Still, challenges remain as Celcuity's profitability metrics raise some concerns. The company's Price-to-Earnings (P/E) ratio stands at -5.32, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -6.31, underscoring the company's current lack of profitability. This is further corroborated by analysts' expectations that Celcuity will not achieve profitability this year. Moreover, the company's Return on Assets for the same period is -41.61%, a metric that investors often scrutinize when assessing a company's efficiency in generating profits from its assets.
Despite these hurdles, Celcuity's stock appears to be in oversold territory according to its Relative Strength Index (RSI), as per another InvestingPro Tip. This could suggest a potential opportunity for investors to consider the stock at a lower entry point, especially in light of the company's strategic initiatives such as the planned Phase 3 clinical trial for gedatolisib.
For investors seeking a deeper dive into Celcuity's financials and market performance, InvestingPro offers a wealth of additional tips. In fact, there are 6 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/CELC. To enhance your investment research experience, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These insights could prove invaluable as Celcuity navigates the competitive landscape of biotechnology and strives to bring its therapies to market.
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