Annexon Announces Pricing of $125 Million Underwritten Public Offering
Annexon announced the pricing of its public offering of 13,001,120 shares of common stock at $6.25 per share, potentially raising $125 million before underwriting discounts and commissions. Additionally, pre-funded warrants for 7,000,000 shares at $6.249 per share were also part of the offering. The proceeds aim to further the company's late-stage clinical platform targeting neuroinflammatory diseases. The offering is expected to close on June 7, 2024, subject to customary conditions. J.P. Morgan, Jefferies, TD Cowen, BofA Securities, and Wells Fargo Securities are joint book-running managers for the offering. More details are available through the SEC's website.
- Annexon potentially raising $125 million through public offering.
- Offering aims to fund late-stage clinical platform targeting neuroinflammatory diseases.
- Involvement of major financial institutions like J.P. Morgan, Jefferies, TD Cowen, BofA Securities, and Wells Fargo Securities as joint book-running managers.
- The offering includes a 30-day option for underwriters to purchase an additional 3,000,168 shares.
- Potential shareholder dilution with the issuance of 13,001,120 new shares.
- Pre-funded warrants for 7,000,000 shares could exert additional downward pressure on stock price.
- Proceeds are gross, implying that actual net funds raised will be lower after deducting underwriting discounts and other expenses.
Insights
The public offering priced at
From a financial perspective, the offering price set at
This capital injection is essential for Annexon’s potential growth trajectory, particularly in the biotech sector where substantial funds are often required for clinical trials and regulatory approvals. The 30-day option to purchase additional shares provides flexibility to raise even more capital if there is strong demand, offering more financial stability.
For a retail investor: The public offering can dilute existing share value in the short term, but the raised capital could bolster long-term growth prospects. However, it is important to consider the company's fiscal health and how the raised funds will be deployed.
Annexon’s extensive involvement in neuroinflammatory diseases underscores the importance of this capital raise for its market positioning. The biopharmaceutical sector is highly competitive and capital-intensive, making it important for companies like Annexon to secure adequate funding to maintain competitiveness and innovation.
The underwriters involved, including J.P. Morgan, Jefferies and BofA Securities, among others, provide credibility and attract institutional investors, enhancing market confidence. The participation of these high-profile financial institutions typically indicates a well-regarded offering, which can positively influence investor sentiment and market momentum.
Given the large-scale offering, it’s also relevant to consider market dilution and the potential impact on share price. Existing shareholders might face dilution risks; however, the successful raising of capital could result in strategic advancements, potentially increasing the company's market valuation in the long run.
Insight for investors: Understanding the deployment of raised capital towards impactful strategic initiatives can provide clarity on future growth. Monitoring the company’s progress in its clinical pipeline and market advancements will be critical to gauge the real value this offering brings.
BRISBANE, Calif., June 05, 2024 (GLOBE NEWSWIRE) -- Annexon, Inc. (Nasdaq: ANNX), a biopharmaceutical company advancing a late-stage clinical platform of novel therapies for people living with devastating classical complement-mediated neuroinflammatory diseases of the body, brain, and eye, today announced the pricing of its previously announced underwritten public offering of 13,001,120 shares of its common stock at a price to the public of
The total gross proceeds to Annexon are expected to be
J.P. Morgan, Jefferies, TD Cowen, BofA Securities and Wells Fargo Securities are acting as joint book-running managers for the offering.
The shares are being offered by Annexon pursuant to a shelf registration statement on Form S-3, including a base prospectus, that was filed with the Securities and Exchange Commission (SEC) and declared effective by the SEC on April 1, 2024. The offering is being made only by means of a prospectus supplement and the accompanying prospectus that will form a part of the registration statement. These documents can be accessed for free through the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 547-6340, or by email at Prospectus_Department@Jefferies.com; or TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846, or by email at TD.ECM_Prospectus@tdsecurities.com; or BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255, Attention: Prospectus Department, or by email at dg.prospectus_requests@bofa.com; or Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, by telephone at 800-645-3751 (option #5), or by email at WFScustomerservice@wellsfargo.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Annexon
Annexon Biosciences (Nasdaq: ANNX) is a biopharmaceutical company advancing a late-stage clinical platform of novel therapies for people living with devastating classical complement-mediated neuroinflammatory diseases of the body, brain, and eye. Annexon’s novel scientific approach targets upstream C1q to block the classical complement inflammatory cascade before it starts, and its therapeutic candidates are designed to provide meaningful benefits across multiple autoimmune, neurodegenerative and ophthalmic diseases. With proof-of concept data in Guillain-Barré syndrome, Huntington’s disease and geographic atrophy, Annexon is rigorously advancing its mid-to late-stage clinical trials to bring new potential treatments to patients as quickly as possible.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “seek,” “should,” “suggest,” “target,” “on track,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. All statements other than statements of historical facts contained in this press release are forward-looking statements. These forward-looking statements include, but are not limited to, statements about the expected gross proceeds from the offering and the closing date of the offering. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated, including, but not limited to, risks and uncertainties related to, among other things, market conditions and the satisfaction of customary closing conditions related to the public offering. These and other risks are described in greater detail under the section titled “Risk Factors” contained in the preliminary prospectus supplement and the accompanying prospectus, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and the company’s other filings with the SEC. Any forward-looking statements that the company makes in this press release are made pursuant to the Private Securities Litigation Reform Act of 1995, as amended, and speak only as of the date of this press release. Except as required by law, the company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contact:
Joyce Allaire
LifeSci Advisors
jallaire@lifesciadvisors.com
Media Contact:
Sheryl Seapy
Real Chemistry
949-903-4750
sseapy@realchemistry.com
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