Ascendis Pharma A/S Announces Pricing of Public Offering of ADSs

Rhea-AI Summary

Ascendis Pharma A/S (Nasdaq: ASND) has announced the pricing of its public offering of 2,000,000 American Depositary Shares (ADSs) at $150.00 per ADS. The offering is expected to close around September 23, 2024. Ascendis has also granted underwriters a 30-day option to purchase up to 300,000 additional ADSs. The company estimates net proceeds of approximately $281.3 million, which will be used for commercial preparations, launch activities, clinical development, regulatory approvals, and general corporate purposes.

J.P. Morgan, Morgan Stanley, Evercore ISI, and Goldman Sachs & Co. are acting as joint book-running managers. BofA Securities, Wells Fargo Securities, and Citigroup are lead managers, while Oppenheimer & Co. is co-manager for the offering. A shelf registration statement has been filed with the SEC, and the offering is being made through a prospectus.

Positive

• Public offering of 2,000,000 ADSs priced at $150.00 per ADS
• Estimated net proceeds of $281.3 million
• Funds to support commercial activities, clinical development, and regulatory approvals
• Option for underwriters to purchase additional 300,000 ADSs

Negative

• Potential dilution of existing shareholders' ownership
• Increased outstanding shares may negatively impact stock price

Insights

Financial Analyst

Ascendis Pharma's $300 million public offering is a significant move to bolster its financial position. At $150 per ADS, the pricing suggests strong investor confidence. The estimated net proceeds of $281.3 million will substantially strengthen the company's balance sheet, providing important funding for commercial activities and product development.

The involvement of major underwriters like J.P. Morgan and Morgan Stanley adds credibility to the offering. The 30-day option for additional shares could potentially increase proceeds by 15%, offering flexibility to capitalize on market demand. This capital raise positions Ascendis well for upcoming product launches and clinical developments, potentially accelerating its growth trajectory in the competitive pharma landscape.

Market Research Analyst

This offering signals Ascendis Pharma's strategic focus on commercialization and pipeline advancement. The substantial capital raise indicates the company's confidence in its near-term prospects, likely driven by promising clinical data or imminent product launches. Investors should note the broad allocation of funds across commercial preparations, product development and general corporate purposes, suggesting a comprehensive growth strategy.

The timing of this offering, amidst volatile market conditions, demonstrates strong institutional interest in Ascendis's potential. The diverse syndicate of underwriters further validates the company's market position. This financial maneuver could potentially reshape Ascendis's competitive stance in its therapeutic areas, warranting close attention from industry observers and investors alike.

COPENHAGEN, Denmark, Sept. 20, 2024 (GLOBE NEWSWIRE) -- Ascendis Pharma A/S (Nasdaq: ASND) today announced the pricing of its underwritten public offering of 2,000,000 American Depositary Shares (“ADSs”), each of which represents one ordinary share of Ascendis, at a price to the public of $150.00 per ADS. All of the ADSs are being offered by Ascendis. The offering is expected to close on or about September 23, 2024, subject to the satisfaction of customary closing conditions. In addition, Ascendis has granted the underwriters a 30-day option to purchase up to an additional 300,000 ADSs at the public offering price, less the underwriting commissions.

Ascendis estimates the net proceeds from the offering will be approximately $281.3 million (assuming no exercise of the underwriters’ option to purchase additional ADSs), after deducting the underwriting commissions and estimated offering expenses. Ascendis intends to use the net proceeds of the offering to support the commercial preparations, launch and commercial activities, clinical development and regulatory approvals for its products and product candidates, and for working capital and general corporate purposes.

J.P. Morgan, Morgan Stanley, Evercore ISI and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering. BofA Securities, Wells Fargo Securities and Citigroup are acting as lead managers for the offering and Oppenheimer & Co. is acting as co-manager for the offering.

A shelf registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (“SEC”) on September 18, 2024, and automatically became effective upon filing. This offering is being made solely by means of a prospectus. A copy of the final prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained by contacting J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmchase.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, or by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the 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 an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Ascendis Pharma A/S

Ascendis Pharma is applying its innovative TransCon technology platform to build a leading, fully integrated biopharma company focused on making a meaningful difference in patients’ lives. Guided by its core values of Patients, Science, and Passion, Ascendis uses its TransCon technologies to create new and potentially best-in-class therapies. Ascendis is headquartered in Copenhagen, Denmark and has additional facilities in Europe and the United States.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Ascendis’ future operations, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements relating to (i) the satisfaction of customary closing conditions related to the offering, (ii) the expected closing of the offering, (iii) Ascendis’ expectations regarding the anticipated closing date, (iv) Ascendis’ intended use of the net proceeds from the offering, (v) Ascendis’ ability to apply its TransCon technology platform to build a leading, fully integrated biopharma company and (vi) Ascendis’ expectations regarding its ability to utilize its TransCon technologies to create new and potentially best-in-class therapies. Ascendis may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Ascendis makes, including the following: dependence on third party manufacturers, distributors and service providers for Ascendis’ products and product candidates; unforeseen safety or efficacy results in Ascendis’ development programs or on-market products; unforeseen expenses related to commercialization of any approved Ascendis products; unforeseen expenses related to Ascendis’ development programs; unforeseen selling, general and administrative expenses, other research and development expenses and Ascendis’ business generally; delays in the development of its programs related to manufacturing, regulatory requirements, speed of patient recruitment or other unforeseen delays; Ascendis’ ability to obtain additional funding, if needed, to support its business activities; the impact of international economic, political, legal, compliance, social and business factors. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Ascendis’ business in general, see Ascendis’ Annual Report on Form 20-F filed with the SEC on February 7, 2024 and Ascendis’ other future reports filed with, or submitted to, the SEC. Forward-looking statements do not reflect the potential impact of any future in-licensing, collaborations, acquisitions, mergers, dispositions, joint ventures, or investments that Ascendis may enter into or make. Ascendis does not assume any obligation to update any forward-looking statements, except as required by law.

Ascendis, Ascendis Pharma and the Ascendis Pharma logo are trademarks owned by the Ascendis Pharma group. © September 2024 Ascendis Pharma A/S.

Investor Contacts: Tim Lee  Ascendis Pharma (650) 374-6343  tle@ascendispharma.com ir@ascendispharma.com	Media Contact: Melinda Baker Ascendis Pharma (650) 709-8875 media@ascendispharma.com
Patti Bank  ICR Westwicke (415) 513-1284  patti.bank@westwicke.com

Source: Ascendis Pharma A/S

FAQ

What is the price per ADS in Ascendis Pharma's (ASND) public offering?

Ascendis Pharma (ASND) has priced its public offering at $150.00 per American Depositary Share (ADS).

How many ADSs is Ascendis Pharma (ASND) offering in its public offering?

Ascendis Pharma (ASND) is offering 2,000,000 American Depositary Shares (ADSs) in its public offering.

When is the expected closing date for Ascendis Pharma's (ASND) public offering?

The public offering by Ascendis Pharma (ASND) is expected to close on or about September 23, 2024.

How much does Ascendis Pharma (ASND) expect to raise from the public offering?

Ascendis Pharma (ASND) estimates net proceeds of approximately $281.3 million from the public offering, assuming no exercise of the underwriters' option to purchase additional ADSs.

What will Ascendis Pharma (ASND) use the proceeds from the public offering for?

Ascendis Pharma (ASND) intends to use the proceeds for commercial preparations, launch activities, clinical development, regulatory approvals, working capital, and general corporate purposes.