BioVie Inc. Announces Proposed Public Offering of Common Stoc
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Insights
From a financial standpoint, BioVie Inc.'s decision to engage in a public offering of common stock and potentially pre-funded warrants is a strategic move to bolster its working capital and support general corporate purposes. This indicates the company is seeking to secure funding to maintain operations and invest in its growth. The offering's success is contingent upon market conditions which can be influenced by investor sentiment, sector performance and broader economic indicators.
Investors should monitor the size and terms of the offering, as they can impact the company's valuation and existing shareholders' equity. A dilution of shares may occur, potentially affecting the stock price. However, the capital raised could enable BioVie to advance its clinical programs, which may enhance its long-term value. It's crucial to assess the balance between immediate dilutive effects and the potential for future growth catalyzed by the use of proceeds.
The biotechnology sector is highly competitive and capital-intensive, with a significant emphasis on research and development (R&D) investment. BioVie's focus on advanced liver disease and neurological disorders positions it in niche markets with high unmet medical needs. The success of this offering could provide the company with the necessary resources to continue its R&D efforts and potentially bring innovative therapies to market.
Investors should consider the company's R&D pipeline's stage and the market potential of its product candidates. The funds raised could significantly impact the company's ability to reach critical milestones, such as advancing clinical trials or preparing for commercialization. The market's response to the offering will also reflect the confidence in the company's future prospects and the perceived risk/reward ratio of its R&D investments.
Legally, the offering is being conducted under a shelf registration statement, which allows BioVie to offer and sell securities in one or more separate offerings with the flexibility of timing and size. This method is often used by public companies to streamline the process of raising capital, as it permits them to act quickly when market conditions are favorable.
Investors should note that the SEC's involvement through the registration statement ensures that the company provides detailed information, including a preliminary prospectus supplement and an accompanying prospectus. This transparency is designed to protect investors by offering access to essential data about the company's financial status, risks and plans for the use of proceeds. Due diligence is advised to understand the legal and regulatory framework governing the offering and the implications for investor rights and protections.
CARSON CITY, Nev., March 01, 2024 (GLOBE NEWSWIRE) -- Carson City, Nevada – March 1, 2024 – BioVie Inc. (NASDAQ: BIVI) (“BioVie” or the “Company”), a clinical-stage company developing innovative drug therapies for the treatment of advanced liver disease and neurological and neurodegenerative disorders, today announced that it intends to offer to sell shares of its common stock (and/or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof) in a best efforts public offering. All of the shares of common stock (and/or Pre-funded Warrants) are to be sold by the Company.
ThinkEquity LLC (“ThinkEquity”) is acting as sole placement agent for the offering.
The offering is subject to market 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.
The Company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.
The securities will be 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. The offering will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.
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 offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of 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 from 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
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