Biomea Fusion Announces Pricing of Upsized Public Offering of Common Stock

Rhea-AI Summary

Biomea Fusion, Inc. (Nasdaq: BMEA) has priced its public offering of 5 million shares at $30.00 each, aiming to raise $150 million before expenses. The offering is set to close on April 3, 2023, pending customary conditions. J.P. Morgan and Citigroup are leading the underwriters, with Oppenheimer & Co. and Barclays also involved. The shares are being offered under an effective shelf registration statement previously filed with the SEC. The funds will support Biomea's mission to develop covalent small molecules targeting genetically defined cancers and metabolic diseases, leveraging its proprietary FUSION™ System.

Positive

• Intended use of funds is for developing covalent small molecules, indicating potential for growth in addressing unmet medical needs.
• Successful pricing of the public offering suggests strong investor interest, enhancing the company's financial stability.

Negative

• Dilution of existing shares due to the public offering, which may negatively impact current shareholders' value.

REDWOOD CITY, Calif., March 29, 2023 (GLOBE NEWSWIRE) -- Biomea Fusion, Inc. (“Biomea”) (Nasdaq: BMEA), a clinical-stage biopharmaceutical company dedicated to discovering and developing novel covalent small molecules to treat and improve the lives of patients with genetically defined cancers and metabolic diseases, today announced the pricing of its previously announced underwritten public offering of 5,000,000 shares of its common stock at a price to the public of $30.00 per share. The gross proceeds to Biomea from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be $150.0 million. In addition, Biomea has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the public offering price less underwriting discounts and commissions. The offering is expected to close on April 3, 2023, subject to the satisfaction of customary closing conditions.

J.P. Morgan and Citigroup are acting as joint book-running managers for the offering. Oppenheimer & Co. and Barclays are also acting as joint book-running managers for the offering.

The securities are being offered by Biomea pursuant to an effective shelf registration statement on Form S-3 that was previously filed with the U.S. Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available for free on the SEC’s website located at http://www.sec.gov. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available for free on the SEC’s website located at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at(800) 831-9146; Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com; or Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (888) 603-5847, or by email at barclaysprospectus@broadridge.com; or by accessing the SEC’s website at www.sec.gov.

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

About Biomea Fusion

Biomea Fusion is a clinical stage biopharmaceutical company focused on the discovery and development of covalent small molecules to treat patients with genetically defined cancers and metabolic diseases. A covalent small molecule is a synthetic compound that forms a permanent bond to its target and offers a number of potential advantages over conventional non-covalent drugs, including greater target selectivity, lower drug exposure, and the ability to drive a deeper, more durable response. The company is utilizing its proprietary FUSION™ System to discover, design and develop a pipeline of next-generation covalent-binding small molecule medicines designed to target key drivers of cancer and metabolic diseases, including diabetes. Biomea Fusion is a leader in advancing next-generation covalent small molecule medicines. Biomea aims to cure.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding Biomea’s anticipated public offering. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, uncertainties related to market conditions and statements regarding the expected gross proceeds of the offering, timing of closing of the offering, the satisfaction of customary closing conditions related to the offering and sale of securities and Biomea’s ability to complete the offering. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Biomea’s most recent annual report on Form 10-K, as well as discussions of potential risks, uncertainties, and other important factors in Biomea’s other filings with the SEC, including those contained or incorporated by reference in the preliminary prospectus supplement and accompanying prospectus related to the offering filed with the SEC. Any forward-looking statements contained in this press release represent Biomea’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Biomea explicitly disclaims any obligation to update any forward-looking statements, except as required by law.

FAQ

What is the stock offering price for Biomea Fusion (BMEA)?

Biomea Fusion has priced its public offering at $30.00 per share.

How many shares is Biomea Fusion offering in its public offering?

Biomea Fusion is offering a total of 5 million shares in its public offering.

When is the public offering for Biomea Fusion expected to close?

The public offering is expected to close on April 3, 2023.

Who are the underwriters for Biomea Fusion's public offering?

J.P. Morgan and Citigroup are the joint book-running managers, with Oppenheimer & Co. and Barclays also participating.

What will Biomea Fusion do with the funds raised from the public offering?

Funds from the offering will be used to support the development of covalent small molecules targeting genetically defined cancers and metabolic diseases.