Centessa Pharmaceuticals Announces $150,000,000 Proposed Public Offering of American Depositary Shares

Rhea-AI Summary

Centessa Pharmaceuticals plc (Nasdaq: CNTA), a clinical-stage pharmaceutical company, has announced a proposed public offering of $150 million of American Depositary Shares (ADSs). The company plans to grant underwriters a 30-day option to purchase up to an additional $22.5 million of ADSs. Goldman Sachs & Co. , Leerink Partners, Evercore ISI, Guggenheim Securities, and BMO Capital Markets are acting as joint book-running managers for the offering. The offering is subject to market conditions, and there is no guarantee of its completion or final terms. A registration statement on Form S-3 has been filed with the SEC, and a preliminary prospectus supplement will be available.

Positive

• Potential to raise up to $172.5 million in capital if the underwriters' option is exercised
• Strengthening of the company's financial position for future operations and research
• Involvement of reputable financial institutions as joint book-running managers

Negative

• Potential dilution of existing shareholders' ownership
• Increase in the number of outstanding shares may put downward pressure on stock price
• Market uncertainty regarding the offering's completion and final terms

Insights

Financial Analyst

Centessa Pharmaceuticals' $150 million public offering of American Depositary Shares (ADSs) is a significant move to bolster its financial position. This capital raise, with an additional $22.5 million option for underwriters, could potentially inject up to $172.5 million into the company's coffers. For a clinical-stage pharmaceutical firm, this influx of capital is important for funding ongoing research and development efforts.

The involvement of heavyweight underwriters like Goldman Sachs and Leerink Partners lends credibility to the offering. However, investors should note the dilutive effect on existing shareholders. The market's reaction will largely depend on how effectively Centessa communicates its plans for utilizing these funds. While this move strengthens the company's balance sheet, it's essential to monitor the burn rate and progress of their pipeline to assess long-term value creation.

Biotech Industry Expert

This public offering by Centessa Pharmaceuticals is a strategic move typical of clinical-stage biotech companies. With a focus on discovering and developing transformational medicines, substantial capital is required to advance drug candidates through costly clinical trials. The $150 million raised could potentially fund multiple clinical programs or a pivotal late-stage trial.

Investors should closely monitor Centessa's pipeline progress and upcoming milestones. The success of this offering will ultimately be judged by the company's ability to translate this capital into clinical advancements and potential regulatory approvals. While the influx of funds is positive for near-term operations, it's important to assess the company's cash runway extension and how it aligns with expected clinical readouts and potential commercialization timelines.

Market Research Analyst

Centessa's public offering comes at a time when the biotech sector is experiencing volatility. The company's ability to secure underwriting from top-tier investment banks suggests confidence in its prospects. However, the success of this offering will largely depend on current market sentiment towards clinical-stage biotech companies and Centessa's specific pipeline potential.

Investors should consider how this capital raise compares to peers in terms of size and timing. The $150 million base offering with a 15% overallotment option is substantial for a clinical-stage company. It's important to analyze how this additional funding positions Centessa competitively within its therapeutic areas of focus. The market's reception to this offering could provide insights into investor appetite for speculative biotech investments in the current economic climate.

BOSTON and LONDON, Sept. 11, 2024 (GLOBE NEWSWIRE) -- Centessa Pharmaceuticals plc (Nasdaq: CNTA), a clinical-stage pharmaceutical company that aims to discover and develop medicines that are transformational for patients, today announced that it has commenced an underwritten public offering of $150 million of American Depositary Shares (“ADSs”), each representing one ordinary share. All of the ADSs are being offered by Centessa. In addition, Centessa intends to grant the underwriters a 30-day option to purchase up to an additional $22.5 million of ADSs offered in the public offering. The proposed offering is subject to market and other 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.

Goldman Sachs & Co. LLC, Leerink Partners, Evercore ISI, Guggenheim Securities and BMO Capital Markets are acting as joint book-running managers for the offering.

The ADSs are being offered pursuant to a registration statement on Form S-3 that was filed with the Securities and Exchange Commission (“SEC”) on September 11, 2024 and became automatically effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering, when available, may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526, email: prospectus-ny@ny.email.gs.com; Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, telephone: (800) 808-7525 ext. 6105, email: syndicate@leerink.com; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, telephone: (888) 474-0200, email: ecm.prospectus@evercore.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8^th Floor, New York, NY 10017, telephone: (212) 518-9544, email: GSEquityProspectusDelivery@guggenheimpartners.com; or BMO Capital Markets Corp., Attention: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, email: bmoprospectus@bmo.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 offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Centessa Pharmaceuticals
Centessa Pharmaceuticals plc is a clinical-stage pharmaceutical company that aims to discover and develop medicines that are transformational for patients. Our most advanced programs include a hemophilia program, an orexin agonist program for the treatment of narcolepsy and other sleep-wake disorders, and an immuno-oncology program focused on our LockBody® technology platform. We operate with the conviction that each of our programs has the potential to change the current treatment paradigm and establish a new standard of care.

Forward Looking Statements
This press release contains forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including those relating to Centessa’s expectations regarding the completion, timing and size of the public offering and its expectations with respect to granting the underwriters a 30-day option to purchase additional ADSs. Any forward-looking statements in this press release are based on our current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties related to completion of the proposed public offering on the anticipated terms, or at all, include, but are not limited to, market conditions and the satisfaction of customary closing conditions related to the proposed public offering. Risks concerning our programs and operations are described in additional detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and our other reports, which are on file with the U.S. Securities and Exchange Commission. We explicitly disclaim any obligation to update any forward-looking statements except to the extent required by law.

Contact:
Kristen K. Sheppard, Esq.
SVP of Investor Relations
investors@centessa.com

 

FAQ

What is the size of Centessa Pharmaceuticals' proposed public offering?

Centessa Pharmaceuticals (CNTA) has announced a proposed public offering of $150 million of American Depositary Shares (ADSs), with an additional 30-day option for underwriters to purchase up to $22.5 million of ADSs.

When did Centessa Pharmaceuticals announce its public offering?

Centessa Pharmaceuticals (CNTA) announced its proposed public offering on September 11, 2024.

Who are the joint book-running managers for Centessa Pharmaceuticals' offering?

The joint book-running managers for Centessa Pharmaceuticals' (CNTA) offering are Goldman Sachs & Co. , Leerink Partners, Evercore ISI, Guggenheim Securities, and BMO Capital Markets.

What is the purpose of Centessa Pharmaceuticals' public offering?

While not explicitly stated in the press release, public offerings are typically used to raise capital for various purposes such as funding research and development, expanding operations, or strengthening the company's financial position.