Amylyx Pharmaceuticals Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Amylyx Pharmaceuticals (NASDAQ: AMLX) has announced the launch of an underwritten public offering of its common stock shares. The company plans to grant underwriters a 30-day option to purchase additional shares up to 15% of the offered shares at the public offering price, less underwriting discounts and commissions.

The net proceeds will be used alongside existing cash, cash equivalents, and marketable securities to advance commercialization preparations and pipeline programs, working capital, and general corporate purposes. Leerink Partners is serving as the sole book-running manager for the offering.

The offering is being made pursuant to an automatically effective shelf registration statement on Form S-3 filed with the SEC on March 13, 2023. The completion, size, and terms of the offering are subject to market conditions.

Positive

• Potential to strengthen cash position for commercialization and pipeline development
• Automatically effective shelf registration already in place

Negative

• Potential dilution of existing shareholders' equity
• Uncertain offering terms and completion timing
• Market-dependent execution risk

Insights

Investment Banker

This public offering represents a critical capital raising initiative for Amylyx, with several noteworthy implications. The structure of the deal, featuring a 15% overallotment option (green shoe), suggests strategic flexibility in managing market demand. Leerink Partners' involvement as sole book-runner indicates a focused distribution approach, leveraging their healthcare sector expertise.

The timing of this offering is particularly interesting given Amylyx's current $258.4M market cap. The decision to tap public markets now could signal either opportunistic capital raising or a need to strengthen the balance sheet. The stated use of proceeds for commercialization preparations and pipeline advancement suggests a strategic push to scale operations, though the lack of specific funding targets raises some concerns about dilution impact.

A simplified explanation: Imagine a company selling additional slices of its ownership pie to raise money. While this means current shareholders will own a smaller percentage of the company, the goal is to make the entire pie bigger through strategic investments, potentially benefiting everyone in the long run.

Financial Analyst

The shelf registration's automatic effectiveness (File No. 333-270505) provides important context - Amylyx had previously positioned itself for rapid capital access. This offering's structure through a shelf takedown demonstrates efficient market timing strategy. However, the absence of pricing details and size specifics in this initial announcement creates uncertainty around potential dilution levels.

The company's choice to maintain flexibility in proceeds allocation across commercialization, pipeline and general corporate purposes suggests a broad-based capital deployment strategy rather than a targeted investment thesis. For retail investors: Think of this like opening a new credit line - while it provides financial flexibility, the key questions are how much will be drawn and at what cost to existing shareholders.

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Amylyx Pharmaceuticals, Inc. (Nasdaq: AMLX) (“Amylyx” or the “Company”) today announced that it has commenced an underwritten public offering of shares of its common stock. All of the shares are being offered by Amylyx. In addition, Amylyx intends to grant the underwriter a 30-day option to purchase additional shares of its common stock in an amount up to 15% of the shares offered in the public offering at the public offering price per share, less underwriting discounts and commissions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Amylyx intends to use the net proceeds from this offering, together with existing cash, cash equivalents and marketable securities, to advance preparations for commercialization and pipeline programs, for working capital and for general corporate purposes.

Leerink Partners is acting as sole book-running manager for the offering.

The shares described above are being offered pursuant to an automatically effective shelf registration statement on Form S-3 (File No. 333-270505) that was filed with the Securities and Exchange Commission (“SEC”) on March 13, 2023. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may also be obtained by contacting: Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525 ext. 6105, or by email at syndicate@leerink.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, 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 the registration or qualification under the securities laws of that state or jurisdiction.

About Amylyx Pharmaceuticals

Amylyx is committed to the discovery and development of new treatment options for communities with high unmet needs, including people living with serious and fatal neurodegenerative diseases and endocrine conditions. Since its founding, Amylyx has been guided by science to address unanswered questions, keeping communities at the heart and center of all decisions. Amylyx is headquartered in Cambridge, Massachusetts.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including with respect to Amylyx’ intention to conduct an offering and sale of securities, the completion of the proposed offering, the expectation to grant the underwriter a 30-day option to purchase additional shares and the expected use of proceeds from the proposed offering. No assurance can be given that the offering discussed above will be completed. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements in this press release are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include those risks and uncertainties set forth in Amylyx’ SEC filings, including Amylyx’ Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 and its subsequent filings with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Amylyx undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Amylyx.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250109174588/en/

Media

Amylyx Media Team

+1 (857) 799-7274

amylyxmediateam@amylyx.com

Investors

Lindsey Allen

Amylyx Pharmaceuticals, Inc.

+1 (857) 320-6244

Investors@amylyx.com

Source: Amylyx Pharmaceuticals, Inc.

FAQ

What is the purpose of Amylyx Pharmaceuticals' (AMLX) new public offering?

The offering aims to raise funds for commercialization preparations, pipeline programs advancement, working capital, and general corporate purposes.

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

Underwriters have a 30-day option to purchase up to 15% additional shares at the public offering price, less underwriting discounts and commissions.

When was AMLX's shelf registration statement filed with the SEC?

The shelf registration statement on Form S-3 was filed with the SEC on March 13, 2023.

Who is the book-running manager for AMLX's public offering?

Leerink Partners is acting as the sole book-running manager for the offering.

How will AMLX use the proceeds from this public offering?

AMLX will use the proceeds, along with existing cash and marketable securities, for commercialization preparations, pipeline programs, working capital, and general corporate purposes.