Akebia Therapeutics Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Akebia Therapeutics (Nasdaq: AKBA) has announced the pricing of its underwritten public offering of 25,000,000 shares of common stock at $2.00 per share. The offering is expected to generate gross proceeds of $50.0 million before deducting underwriting costs and other expenses.

The company has granted underwriters a 30-day option to purchase up to 3,750,000 additional shares at the public offering price, less underwriting discounts. The offering is set to close on March 21, 2025, subject to customary conditions.

The offering is being managed by Leerink Partners and Piper Sandler & Co. as joint bookrunning managers, with BTIG, as lead manager and H.C. Wainwright & Co. as co-manager. The shares are being offered through a shelf registration statement filed with the SEC on September 3, 2024.

Positive

• Secured $50 million in gross proceeds through public offering
• Additional potential funding through 30-day option for 3.75M shares

Negative

• Significant shareholder dilution with 25M new shares being issued
• Stock price set at $2.00 per share indicates relatively low valuation

Insights

Financial Analyst

Akebia's new $50 million public offering represents a significant capital raise, but the pricing reveals concerning details for existing shareholders. The offering of 25 million shares at $2.00 per share comes at a substantial 30% discount to the current market price of $2.84, which typically signals weakness in investor demand.

The dilution impact is substantial - with Akebia's current market cap around $613 million, the company is increasing its share count by approximately 11.6%. This dilution at below-market prices will likely pressure the stock in the near term as the market absorbs the additional shares.

The underwriter option for an additional 3.75 million shares could potentially increase total proceeds to $57.5 million but would further dilute shareholders. While the financing strengthens Akebia's balance sheet, the steep discount suggests the company may have faced challenges securing capital on more favorable terms.

For a biopharmaceutical company focused on kidney disease, this capital raise likely reflects needs for ongoing R&D funding, but the terms indicate investors demanded significant concessions to participate. The involvement of multiple underwriters (Leerink Partners, Piper Sandler, BTIG, and H.C. Wainwright) suggests a coordinated effort was needed to place these shares.

CAMBRIDGE, Mass., March 19, 2025 (GLOBE NEWSWIRE) -- Akebia Therapeutics^®, Inc. (“Akebia”) (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, today announced the pricing of its underwritten public offering (the “Offering”) of 25,000,000 shares of its common stock at a public offering price of $2.00 per share. All shares are being offered by Akebia. The gross proceeds to Akebia from the Offering, before deducting underwriting discounts, commissions and other offering expenses, are expected to be $50.0 million. In addition, Akebia has granted the underwriters a 30-day option to purchase up to 3,750,000 additional shares of its common stock at the public offering price, less underwriting discounts and commissions. The Offering is expected to close on March 21, 2025, subject to the satisfaction of customary closing conditions.

Leerink Partners and Piper Sandler & Co. are acting as joint bookrunning managers for the Offering. BTIG, LLC is acting as lead manager and H.C. Wainwright & Co. is acting as co-manager for the Offering.

The shares are being offered by Akebia pursuant to a shelf registration statement that was filed with the Securities and Exchange Commission (“SEC”) on September 3, 2024 and declared effective by the SEC on September 12, 2024.

The Offering is being made only by means of a prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the Offering has been filed with the SEC and may be obtained for free by visiting the SEC’s website at www.sec.gov. A final prospectus supplement relating to the Offering will be filed with the SEC. When available, copies of the final prospectus supplement and the accompanying prospectus may also be obtained by contacting: Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800)-808-7525, ext. 6105, or by email at syndicate@leerink.com; or Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, or by telephone at (800)-747-3924, or by email at prospectus@psc.com.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy these securities, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Akebia Therapeutics
Akebia Therapeutics, Inc. is a fully integrated biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease. Akebia was founded in 2007 and is headquartered in Cambridge, Massachusetts.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that involve substantial risks and uncertainties. The terms “anticipate,” “believe,” “build,” “can,” “contemplate,” “continue,” “could,” “should,” “designed,” “estimate,” “project,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “strategy,” “seek,” “target,” “will,” “would,” derivatives of these words, and similar references are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among others, statements regarding the Offering, including the satisfaction of customary closing conditions relating to the Offering and the expected closing of the Offering. Actual results may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include, without limitation, risks and uncertainties related to market conditions that may affect the timing, terms and conditions of the Offering and the satisfaction of closing conditions related to the Offering. There can be no assurance that Akebia will be able to complete the Offering on the anticipated terms, or at all. You should not place undue reliance on these forward-looking statements. Additional risks and uncertainties relating to the Offering, Akebia and its business include those identified under the heading “Risk Factors” in Akebia's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, Akebia’s preliminary prospectus supplement filed with the SEC on March 19, 2025 and other filings that Akebia may make with the SEC in the future. The forward-looking statements contained in this press release (except as otherwise noted) speak only as of the date hereof, and, except as required by law, Akebia does not undertake, and specifically disclaims, any obligation to update any forward-looking statements contained in this press release.

Akebia Therapeutics Contact
Mercedes Carrasco
mcarrasco@akebia.com

Source: Akebia Therapeutics, Inc.

FAQ

How much money will Akebia Therapeutics (AKBA) raise in its March 2025 public offering?

Akebia will raise $50 million in gross proceeds through the offering of 25 million shares at $2.00 per share, before deducting underwriting costs and expenses.

What is the price per share for AKBA's March 2025 public offering?

The public offering price is set at $2.00 per share.

When will AKBA's public offering close?

The offering is expected to close on March 21, 2025, subject to customary closing conditions.

How many additional shares can underwriters purchase in AKBA's offering?

Underwriters have a 30-day option to purchase up to 3,750,000 additional shares at the public offering price.

Who are the managing underwriters for AKBA's public offering?

Leerink Partners and Piper Sandler & Co. are joint bookrunning managers, with BTIG, as lead manager and H.C. Wainwright & Co. as co-manager.