NOVATO, Calif. – Ultragenyx Pharmaceutical Inc. (NASDAQ: NASDAQ:RARE), a developer of therapies for rare genetic diseases, announced today the launch of a public offering aiming to raise up to $350 million through the sale of common stock and pre-funded warrants. The company also plans to offer underwriters a 30-day option to buy additional shares worth approximately $52.5 million.
The offering, which is contingent on market conditions, has not been guaranteed a completion date or success. J.P. Morgan, Goldman Sachs (NYSE:GS) & Co. LLC, BofA Securities, and TD Cowen have been appointed as the joint book-running managers.
Ultragenyx's securities became available for automatic registration with the Securities and Exchange Commission (SEC) on February 21, 2024. The offering is being conducted via a prospectus supplement and accompanying prospectus, details of which are obtainable from the managing banks.
The biopharmaceutical company focuses on addressing unmet medical needs for serious rare and ultrarare genetic diseases, with a pipeline of approved and candidate drugs. The management team at Ultragenyx is seasoned in rare disease therapy development and commercialization.
This fundraising effort is part of Ultragenyx's strategy for efficient drug development and the swift delivery of therapies to patients. The company has clarified that the press release contains forward-looking statements, which are subject to risks and uncertainties that could affect the actual results of the offering and the company's future performance.
This article is based on a press release statement and aims to provide factual information without any endorsement of claims.
In other recent news, Ultragenyx Pharmaceutical Inc. has made significant progress in its gene therapy programs. The company has reached a consensus with the U.S. Food and Drug Administration (FDA) for accelerated approval of its gene therapy, UX111, for Sanfilippo syndrome. The approval is based on existing clinical data, and the company plans to submit a biologics license application later this year or early next year.
The company's gene therapy, UX111, is currently under evaluation in the ongoing pivotal Transpher A study for its safety and efficacy in treating children with Sanfilippo syndrome. However, Ultragenyx has cautioned that the clinical development process is subject to substantial risks and uncertainties that could affect the development timeline, regulatory approval, and the potential success of UX111.
Analyst firms such as Goldman Sachs, Baird, Stifel, Piper Sandler, and Canaccord Genuity have revised their outlook on Ultragenyx following positive outcomes from its Phase 3 GlucoGene study. Goldman Sachs upgraded Ultragenyx shares from Neutral to Buy, citing increased conviction in the company's monoclonal antibody setrusumab and the diverse rare disease pipeline. The firm also projected a potential 2026 approval and launch for gene therapy DTX401 in GSD1a, forecasting that Ultragenyx will reach GAAP profitability in 2027.
These recent developments underscore the growing confidence in the potential success of Ultragenyx's DTX401 therapy and setrusumab. The positive clinical trial results and analyst upgrades reflect the company's progress in rare disease treatment.
InvestingPro Insights
As Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE) embarks on a significant capital raising venture, investors may be weighing the company's current financial metrics and market performance. According to InvestingPro data, RARE has a market capitalization of $3.73 billion. The company's revenue growth over the last twelve months as of Q1 2024 is reported at 15.29%, reflecting a positive trajectory in sales. However, the gross profit margin stands at a concerning -60.26%, indicating that despite increasing revenue, the company is losing money on the cost of goods sold.
The company's Price / Book ratio as of Q1 2024 is 26.44, which is high compared to industry peers, suggesting that the market may be valuing the company's assets optimistically. This is reinforced by an adjusted P/E Ratio for the same period at -6.01, further indicating that profitability is not on the immediate horizon, as echoed by one of the InvestingPro Tips stating that analysts do not anticipate the company will be profitable this year.
For investors seeking a deeper analysis, InvestingPro offers additional insights, including a total of six InvestingPro Tips for RARE. These tips provide a comprehensive view of the company's financial health and market valuation, which could be crucial for making informed investment decisions. Interested readers can further explore these insights by visiting https://www.investing.com/pro/RARE and can benefit from a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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