BOSTON and LONDON - Centessa Pharmaceuticals plc (NASDAQ:CNTA), a clinical-stage pharmaceutical company, announced today its initiation of a $150 million underwritten public offering of American Depositary Shares (ADSs). The company also plans to provide underwriters a 30-day option to purchase up to an additional $22.5 million of ADSs. The completion and terms of the offering are subject to market conditions, and no assurances can be given regarding the finalization or specifics of the offering.
The ADSs, each representing one ordinary share, are being offered pursuant to an automatically effective registration statement filed with the Securities and Exchange Commission (SEC) on September 11, 2024. Financial institutions including Goldman Sachs (NYSE:GS) & Co. LLC, Leerink Partners, Evercore ISI, Guggenheim Securities, and BMO Capital Markets are serving as joint book-running managers for the offering.
Centessa's portfolio includes advanced programs in hemophilia, sleep-wake disorders, and immuno-oncology, with a focus on their proprietary LockBody® technology platform. The company emphasizes the potential of their programs to significantly impact current treatment standards.
The proposed offering's preliminary prospectus supplement, along with the accompanying prospectus, will be available on the SEC's website. Copies can be obtained from the respective book-runners upon request. The press release emphasizes that this announcement shall not constitute an offer to sell or a solicitation of an offer to buy the securities, and sales will not be made in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The company cautions that forward-looking statements in the press release, including those regarding the anticipated offering, are subject to various risks and uncertainties. Market conditions and customary closing conditions could affect the completion of the offering. Centessa explicitly disclaims any obligation to update forward-looking statements unless required by law.
This news article is based on a press release statement from Centessa Pharmaceuticals plc.
In other recent news, Centessa Pharmaceuticals has been making significant strides with its ORX750 program for sleep disorders. The drug demonstrated a clean safety profile in Phase 1 trials, increasing sleep onset latency by 32 minutes at a 2.5mg dose in sleep-deprived volunteers. Jefferies, a global investment banking firm, increased its price target for Centessa shares to $19.00, maintaining a Buy rating on the stock. BMO Capital and Oppenheimer also maintained an Outperform rating for Centessa, with BMO Capital raising Centessa's stock price target from $15.00 to $20.00.
The company plans to advance ORX750 into further clinical trials for narcolepsy types 1 and 2 and idiopathic hypersomnia, beginning in the fourth quarter of 2024. Additionally, Centessa's drug candidate ORX142 also shows promise in promoting wakefulness at low doses in non-human primates, according to recent preclinical studies. These recent developments underscore Centessa's ongoing efforts in the pharmaceutical industry.
InvestingPro Insights
As Centessa Pharmaceuticals plc (NASDAQ:CNTA) prepares for its $150 million public offering, InvestingPro data offers a snapshot of the company's financial health and market performance. With a market capitalization of $1.65 billion and a striking 122.26% return over the last year, Centessa stands out in the biopharmaceutical sector. Despite the company not being profitable over the last twelve months, analysts have revised their earnings upwards for the upcoming period, reflecting optimism in Centessa's growth potential.
InvestingPro Tips highlight that Centessa holds more cash than debt on its balance sheet, which could provide the company with financial flexibility post-offering. Additionally, the company is anticipated to experience sales growth in the current year. This is particularly relevant as Centessa expands its portfolio with advanced programs in various therapeutic areas. These factors, combined with a strong return of 83.17% year-to-date, suggest a robust interest in Centessa's market trajectory.
Interested investors can explore further insights and metrics, including 11 additional InvestingPro Tips for Centessa, by visiting the dedicated page at https://www.investing.com/pro/CNTA. With the next earnings date set for November 11, 2024, market watchers and potential investors will be keen to assess the company's performance in light of the planned public offering.
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