BioVie Inc. Announces Closing of Public Offering

Rhea-AI Summary

BioVie Inc. (Nasdaq: BIVI), a clinical-stage company developing therapies for liver disease and neurological disorders, has closed its previously announced public offering. The offering included 1,360,800 shares of common stock, 600,000 pre-funded warrants, and warrants to purchase up to 1,960,800 shares at a combined price of $1.53 per share or pre-funded warrant with associated common warrant. The common warrants have an exercise price of $1.53 and are exercisable for five years. The offering raised approximately $3,000,000 in gross proceeds. BioVie plans to use the net proceeds for working capital and general corporate purposes. ThinkEquity acted as the sole placement agent for this best efforts offering, which was conducted under a shelf registration statement filed with the SEC.

Positive

• Successful closing of public offering, raising approximately $3 million in gross proceeds
• Funds to be used for working capital and general corporate purposes, potentially supporting ongoing operations
• Offering included a combination of common stock, pre-funded warrants, and common warrants, providing flexibility for investors

Negative

• Potential dilution of existing shareholders' ownership due to the issuance of new shares and warrants
• The offering price of $1.53 per share may be lower than recent trading prices, potentially impacting market perception
• Additional expenses related to placement agent fees and offering costs will reduce the net proceeds available to the company

Insights

Financial Analyst

BioVie's $3 million public offering provides important working capital but comes at a cost of significant dilution. The offering price of $1.53 per share represents a substantial discount to recent trading prices, likely pressuring the stock in the short term. While the cash infusion extends the company's runway, it's a relatively small amount for a clinical-stage biotech, raising questions about future financing needs.

The inclusion of warrants with a $1.53 exercise price could lead to further dilution if exercised, but also provides potential upside for investors if BioVie's pipeline progresses. The company's focus on liver disease and neurological disorders addresses large markets, but success hinges on clinical trial outcomes. Investors should closely monitor cash burn and upcoming trial milestones to assess the adequacy of this funding round.

Biotech Industry Expert

This financing, while necessary, highlights the challenging environment for small-cap biotechs. BioVie's market cap of about $7.8 million post-offering suggests significant investor skepticism about its pipeline prospects. The company's ability to raise only $3 million in this round may limit its ability to advance multiple programs simultaneously.

The offering structure, combining shares with warrants, is typical for high-risk biotechs, offering investors additional upside potential. However, it also indicates the difficulty in attracting funding on more favorable terms. BioVie's focus on liver disease and neurodegenerative disorders targets areas of high unmet need, but competition is fierce. The company will need to demonstrate compelling clinical data to differentiate itself and secure future funding on better terms.

CARSON CITY, Nev., Sept. 25, 2024 (GLOBE NEWSWIRE) -- BioVie Inc. (Nasdaq: BIVI), (“BioVie” or the “Company”), a clinical-stage company developing innovative drug therapies to treat chronic debilitating conditions including liver disease and neurological and neuro-degenerative disorders, today announced the closing of a previously announced best efforts public offering of 1,360,800 shares of its common stock, pre-funded warrants to purchase 600,000 shares of its common stock (“Pre-funded Warrants”) and warrants to purchase up to 1,960,800 shares of common stock (the "Common Warrants") at a combined public offering price of $1.53 per share (or Pre-funded Warrant) and associated Common Warrant. The Common Warrants have an exercise price of $1.53 per share and are immediately exercisable upon issuance for a period of five years following the date of issuance. The gross proceeds to the Company from the offering are approximately $3,000,000, before deducting placement agent fees and offering expenses. The Company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.

ThinkEquity acted as sole placement agent for the offering.

The securities were offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 333-274083), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 18, 2023 and declared effective on August 28, 2023. A final prospectus supplement and accompanying prospectus describing the terms of the offering was filed with the SEC and is available on its website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

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 an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BioVie Inc.
BioVie Inc. (NASDAQ: BIVI) is a clinical-stage company developing innovative drug therapies for the treatment of neurological and neurodegenerative disorders and advanced liver disease. In neurodegenerative disease, the Company’s drug candidate NE3107 inhibits inflammatory activation of ERK and NFkB (e.g., TNF signaling) that leads to neuroinflammation and insulin resistance, but not their homeostatic functions (e.g., insulin signaling and neuron growth and survival). Both are drivers of Alzheimer’s and Parkinson’s diseases. The Company conducted and reported efficacy data on its randomized, double-blind, placebo-controlled, parallel-group, multicenter study to evaluate NE3107 in patients who have mild to moderate Alzheimer's disease (NCT04669028). Results of a Phase 2 investigator-initiated trial (NCT05227820) showing NE3107-treated patients experienced improved cognition and biomarker levels were presented at the Clinical Trial in Alzheimer’s Disease annual conference in December 2022. An estimated six million Americans suffer from Alzheimer’s. A Phase 2 study of NE3107 in Parkinson’s disease (NCT05083260) has completed, and data presented at the International Conference on Alzheimer's and Parkinson's Disease and Related Neurological Disorders conference in Gothenburg, Sweden in March 2023 showed significant improvements in “morning on” symptoms and clinically meaningful improvement in motor control in patients treated with a combination of NE3107 and levodopa vs. patients treated with levodopa alone, and no drug-related adverse events. In liver disease, the Company’s Orphan drug candidate BIV201 (continuous infusion terlipressin), with U.S Food and Drug Administration (“FDA”) Fast Track status, is being evaluated and discussed with guidance received from the FDA regarding the design of Phase 3 clinical testing of BIV201 for the treatment of ascites due to chronic liver cirrhosis. The active agent is approved in the U.S. and in about 40 countries for related complications of advanced liver cirrhosis. For more information, visit http://www.bioviepharma.com/. 

Forward-Looking Statements
This press release contains forward-looking statements, which may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Although BioVie Inc. believes such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Actual results may vary materially from those expressed or implied by the statements herein due to the Company's ability to successfully raise sufficient capital on reasonable terms or at all, available cash on hand and contractual and statutory limitations that could impair our ability to pay future dividends, our ability to complete our pre-clinical or clinical studies and to obtain approval for our product candidates, our ability to successfully defend potential future litigation, changes in local or national economic conditions as well as various additional risks, many of which are now unknown and generally out of the Company's control, and which are detailed from time to time in reports filed by the Company with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. BioVie Inc. does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law.

For Investor Relations Inquiries:
Bruce Mackle
Managing Director, LifeSci Advisors, LLC
bmackle@lifesciadvisors.com

For Media Relations Inquiries:
Melyssa Weible
Managing Partner, Elixir Health Public Relations
mweible@elixirhealthpr.com

FAQ

How much did BioVie (BIVI) raise in its recent public offering?

BioVie Inc. (BIVI) raised approximately $3,000,000 in gross proceeds from its recent public offering closed on September 25, 2024.

What securities were offered in BioVie's (BIVI) public offering?

BioVie's offering included 1,360,800 shares of common stock, 600,000 pre-funded warrants, and warrants to purchase up to 1,960,800 shares of common stock.

What is the exercise price and duration of the common warrants issued by BioVie (BIVI)?

The common warrants issued by BioVie (BIVI) have an exercise price of $1.53 per share and are exercisable for a period of five years from the date of issuance.

How does BioVie (BIVI) plan to use the proceeds from its public offering?

BioVie (BIVI) intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.