Corbus Pharmaceuticals Announces Closing of $94.5 Million Public Offering of Common Stock including Full Exercise of Underwriters' Option to Purchase Additional Shares
- None.
- None.
Insights
Corbus Pharmaceuticals' recent closure of a public offering represents a significant capital infusion, raising approximately $94.5 million. This move is indicative of the company's strategic efforts to bolster its financial position, likely to support ongoing research and development activities within its precision oncology portfolio. From a financial perspective, the involvement of reputable financial institutions such as Jefferies, H.C. Wainwright & Co. and Oppenheimer & Co. as managers for the offering suggests a vote of confidence in the company's potential.
Investors should consider the dilutive effect of nearly 5 million new shares on existing shareholders' equity. However, this dilution may be offset by the potential for accelerated development and commercialization of Corbus's product candidates. The offering price of $19.00 per share could also serve as a reference point for the market's valuation of the company, potentially influencing future stock performance. The capital raised lays a foundation for operational expansion, although it's crucial to monitor how effectively the company deploys these funds to drive growth.
The oncology sector is highly competitive and precision medicine is a burgeoning field with a strong growth trajectory. Corbus's successful capital raise is a testament to the market's interest in innovative cancer treatments. The company's diversified portfolio in precision oncology could position it well to capture market share, provided its pipeline products demonstrate efficacy and safety in clinical trials.
Market dynamics suggest that investors are keen on companies that show promise in addressing unmet medical needs. Corbus's ability to secure a substantial amount of funding may reflect broader market trends where biotech firms with specialized portfolios attract significant investment. The public offering's success should be seen in the context of the company's future potential to bring new therapies to market, which would not only benefit patients but also create value for shareholders if successful.
In the realm of biotechnology, particularly within oncology, the regulatory pathway is a critical factor for companies like Corbus. The mention of a registration statement declared effective by the SEC and the filing of a prospectus supplement are procedural elements that underscore the company's compliance with regulatory requirements for public offerings. The capital raised through this offering is likely earmarked for advancing the clinical pipeline, which includes navigating complex clinical trials and regulatory hurdles.
The precision oncology field hinges on developing targeted therapies that can improve patient outcomes. Corbus's investment in this area may yield significant advances in cancer treatment. However, it's important to note that the road from research to marketable products is fraught with scientific and regulatory challenges. The long-term impact on the business will be contingent upon successful trial outcomes and the ability to navigate the FDA approval process effectively.
NORWOOD, Mass., Feb. 02, 2024 (GLOBE NEWSWIRE) -- Corbus Pharmaceuticals Holdings, Inc. (Nasdaq: CRBP) (“Corbus” or the “Company”), a precision oncology company with a diversified portfolio, today announced the closing of its public offering of 4,973,750 shares of its common stock, including 648,750 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares.
All of the common stock was sold at a public offering price of
Jefferies acted as sole book-running manager for the offering. H.C. Wainwright & Co. and Oppenheimer & Co. acted as lead managers for the offering.
The securities described above were offered by Corbus pursuant to a registration statement (File No. 333-272314) that was previously filed with and declared effective by the Securities and Exchange Commission (the "SEC"). A prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC, and a related registration statement was also filed with the SEC pursuant to Rule 462(b) of the Securities Act of 1933, as amended, which was automatically effective upon filing, and are available for free on the SEC's website at www.sec.gov. Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by sending a request to Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 Corbus
Corbus Pharmaceuticals Holdings, Inc. is a precision oncology company with a diversified portfolio and is committed to helping people defeat serious illness by bringing innovative scientific approaches to well understood biological pathways. Corbus’ pipeline includes CRB-701, a next generation antibody drug conjugate that targets the expression of Nectin-4 on cancer cells to release a cytotoxic payload, CRB-601, an anti-integrin monoclonal antibody which blocks the activation of TGFβ expressed on cancer cells, and CRB-913, a highly peripherally restricted CB1 inverse agonist for the treatment of obesity. Corbus is headquartered in Norwood, Massachusetts.
Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “may,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily contain these identifying words. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with market conditions as well as risks and uncertainties associated with Corbus’ business and finances in general, including the risks and uncertainties in the section captioned “Risk Factors” in the final prospectus supplement related to the public offering that was filed with the SEC and the Company’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Corbus undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
Corbus Pharmaceuticals Contacts:
Sean Moran
Chief Financial Officer
Corbus Pharmaceuticals
smoran@corbuspharma.com
Bruce Mackle
Managing Director
LifeSci Advisors, LLC
bmackle@lifesciadvisors.com
FAQ
How many shares were offered in the public offering by Corbus Pharmaceuticals Holdings, Inc.?
What was the total public offering size of the recent offering by Corbus Pharmaceuticals Holdings, Inc.?
At what price were the shares sold in the public offering by Corbus Pharmaceuticals Holdings, Inc.?
Who acted as the sole book-running manager for the public offering by Corbus Pharmaceuticals Holdings, Inc.?
What was the role of H.C. Wainwright & Co. and Oppenheimer & Co. in the recent offering by Corbus Pharmaceuticals Holdings, Inc.?
Where can the prospectus supplement and accompanying prospectus relating to the offering be obtained?
