CONSHOHOCKEN, Pa. - Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), a company specializing in treatments for nonalcoholic steatohepatitis (NASH), has upsized its public offering to $600 million, the firm announced Monday. The offering, originally set at $500 million, was increased by $100 million following strong investor interest.
The company is offering 750,000 shares of common stock at $260 each, alongside pre-funded warrants to purchase an additional 1,557,692 shares at $259.9999 per warrant. The warrants are priced at one-tenth of a cent below the stock's offering price, effectively the same as the stock price for the purposes of the offering.
Madrigal also provided the underwriters a 30-day option to buy up to an additional 346,153 shares at the public offering price minus the underwriting discounts and commissions. This option could potentially raise additional funds if exercised.
The proceeds from the offering are earmarked for commercializing Rezdiffra™ (resmetirom) in the United States and for general corporate purposes, which include research and development expenditures, clinical trials, manufacturing, potential commercialization outside the U.S., and other corporate expenses.
Goldman Sachs & Co (NYSE:GS). LLC, Jefferies, TD Cowen, Evercore ISI, Piper Sandler, UBS Investment Bank, and Citizens JMP are managing the bookrunning, with H.C. Wainwright & Co. serving as the co-manager for the offering. The offering is expected to close on March 21, 2024, subject to standard closing conditions.
Madrigal's Rezdiffra™, a once-daily, oral medication, is designed to address key factors underlying NASH, a liver disease with a significant lack of effective therapies. The company's commitment to tackling this disease aligns with its broader mission to develop novel therapeutics in areas of high unmet medical need.
This offering is made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on June 1, 2021. The preliminary prospectus supplement and accompanying prospectus have been filed with the SEC and are available on its website. The final prospectus supplement will also be accessible on the SEC's website upon filing.
The details provided in this article are based on a press release statement from Madrigal Pharmaceuticals.
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