LANGHORNE, Pa. - Savara Inc. (NASDAQ:SVRA), a biopharmaceutical company specializing in rare respiratory diseases, has announced an underwritten public offering of its shares. The company is offering 26,246,720 shares at $3.81 each, aiming to raise approximately $100 million before underwriting discounts and commissions. The transaction is anticipated to close on July 1, 2024, pending customary closing conditions.
The offering has attracted notable investors including Bain Capital Life Sciences, Farallon Capital Management, Frazier Life Sciences, Wellington Management, Nantahala Capital, TCGX, and First Light Asset Management. Savara is the sole seller of the shares in this offering.
Jefferies, Piper Sandler, and Guggenheim Securities are serving as joint book-running managers, with Oppenheimer & Co. as the lead manager. The shares are being offered pursuant to Savara's shelf registration statement, which was filed on May 9, 2024, and became effective on May 21, 2024. A prospectus supplement detailing the offering terms will be filed with the Securities and Exchange Commission (SEC) and will be part of the effective registration statement.
Interested parties may obtain the prospectus supplement and the accompanying prospectus from the book-running managers or by visiting the SEC's website.
Savara's flagship product, molgramostim nebulizer solution, is currently in Phase 3 development. It is an inhaled granulocyte-macrophage colony-stimulating factor (GM-CSF) for treating autoimmune pulmonary alveolar proteinosis (aPAP), delivered through a specialized nebulizer system developed for large molecule inhalation.
This press release contains forward-looking statements that are not historical facts but are based on current expectations and involve assumptions that may not materialize. These statements include the anticipated closing date and size of the offering.
The actual results and timing of events could differ materially from those anticipated due to various risks and uncertainties, including market conditions and the company's ability to meet closing conditions and complete the offering.
The information in this article is based on a press release statement and does not constitute an offer to sell or a solicitation of offers to buy any securities.
In other recent news, Savara Inc. has been the focus of several significant developments. H.C. Wainwright maintained a Buy rating on the company's shares and raised its price target to $10.00, following positive trial data for molgramostim, Savara's treatment for autoimmune pulmonary alveolar proteinosis (aPAP). JMP Securities also maintained a Market Outperform rating on Savara and increased its price target to $10.00, reflecting optimism about molgramostim's upcoming approval.
In addition, Piper Sandler maintained an Overweight rating and a $16.00 price target on Savara, expressing confidence in the forthcoming IMPALA-2 data results. Oppenheimer also increased its price target on Savara's shares from $9.50 to $11.00, following the American Thoracic Society International Conference, citing growth in awareness for aPAP and the potential of molgramostim.
These recent developments underscore the anticipation for further data on molgramostim, with key opinion leaders expressing a favorable view of the trial data and analysts maintaining positive ratings and increasing price targets.
InvestingPro Insights
As Savara Inc. (NASDAQ:SVRA) positions itself for a significant public offering, prospective investors should consider key financial metrics and insights that could impact their investment decision. According to real-time data from InvestingPro, Savara's market capitalization stands at a notable $526.5 million USD.
Despite the challenging financial performance indicated by a negative P/E ratio of -10.2 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -8.16, the company maintains a strategic focus on its flagship product, molgramostim nebulizer solution.
InvestingPro Tips highlight that Savara holds more cash than debt on its balance sheet, which can be a reassuring sign for investors looking for stability, especially when navigating the volatile biopharmaceutical market. Moreover, the company's liquid assets exceed its short-term obligations, suggesting a solid financial footing in the near term.
While analysts do not anticipate profitability for Savara this year, and the company has experienced weak gross profit margins, it's important to note that the biopharmaceutical industry often involves long development cycles and significant upfront investment.
The recent price of $3.81 USD per share is below the fair value estimate of $10 USD by analysts, yet closer to the InvestingPro Fair Value of $3.35 USD, reflecting a nuanced perspective on the company's valuation.
Investors interested in a deeper analysis of Savara Inc. can explore additional insights, with a total of 7 InvestingPro Tips available for review at https://www.investing.com/pro/SVRA. For those considering a subscription to InvestingPro for comprehensive investment analysis, remember to use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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