Dyne Therapeutics Announces Closing of Public Offering of Common Stock and Full Exercise by Underwriters of Option to Purchase Additional Shares

Rhea-AI Summary

Dyne Therapeutics (Nasdaq:DYN), a clinical-stage muscle disease company, has successfully closed its public offering of 12,075,000 shares of common stock at $31.00 per share. This includes the underwriters' full exercise of their option to purchase an additional 1,575,000 shares. The gross proceeds reached approximately $374.3 million before deducting underwriting discounts, commissions, and offering expenses. Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities acted as joint book-running managers, while Oppenheimer & Co. and Raymond James served as co-managers. The offering was conducted under a shelf registration statement filed with the SEC on March 5, 2024.

Positive

• Raised $374.3 million in gross proceeds through public offering, enhancing liquidity.
• Successful full exercise of underwriters' option to purchase additional shares indicates strong demand.
• Involvement of major financial institutions like Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities implies credibility.

Negative

• Dilution of existing shares due to issuance of 12,075,000 additional shares.
• Potentially high underwriting discounts, commissions, and offering expenses reducing net proceeds.

Financial Analyst

Dyne Therapeutics' recent public offering of 12,075,000 shares at $31.00 per share resulting in gross proceeds of approximately $374.3 million is a significant move. This influx of capital is critical for a clinical-stage company, particularly one focused on developing therapeutics for genetically driven diseases. The funds raised will likely support ongoing research and development, clinical trials and potential market expansion.

From a financial perspective, the offering was well-received, as indicated by the full exercise of the underwriters' option to purchase additional shares. This demonstrates strong institutional investor confidence in Dyne's business model and future prospects. However, it's important to consider the dilution effect for existing shareholders, which may temper enthusiasm in the short term.

Additionally, the involvement of major underwriters like Morgan Stanley, Jefferies, Stifel and Guggenheim Securities adds credibility to the offering and suggests robust interest from the financial community. For retail investors, the successful capital raise could signal a positive trajectory for Dyne but remain mindful of the risks inherent in investing in early-stage biotech firms.

Overall, the successful completion of this public offering positions Dyne well to advance its therapeutic pipeline, albeit with the typical risks associated with clinical-stage biotechs.

Market Research Analyst

The market's reaction to Dyne Therapeutics’ public offering can provide insights into the broader sentiment towards the biotech sector, particularly firms working on treatments for genetically driven diseases. The substantial funds raised indicate a strong appetite for investments in innovative healthcare solutions. This could reflect a growing recognition of the potential high value these therapeutics can offer, both from a patient care perspective and a financial return standpoint.

For retail investors, it's key to note the strategic timing and structure of this offering. Listing on Nasdaq ensures visibility among a broad investor base and aligns Dyne with other prominent biotech firms. The underwriters’ full exercise of their option to purchase additional shares suggests confidence in Dyne's future, a sentiment that retail investors might find reassuring.

However, it is essential to balance this confidence with the understanding that biotech investments are inherently volatile and subject to regulatory hurdles, clinical trial outcomes and market competition. The successful fundraising provides Dyne with the means to advance its clinical programs, which, if successful, could lead to significant value creation.

WALTHAM, Mass., May 28, 2024 (GLOBE NEWSWIRE) -- Dyne Therapeutics, Inc. (Nasdaq:DYN), a clinical-stage muscle disease company focused on advancing innovative life-transforming therapeutics for people living with genetically driven diseases, today announced the closing of its previously announced underwritten public offering of 12,075,000 shares of its common stock at a public offering price of $31.00 per share, which includes 1,575,000 shares issued upon the exercise in full by the underwriters of their option to purchase additional shares of common stock in the offering. The gross proceeds to Dyne from the offering were approximately $374.3 million, before deducting underwriting discounts and commissions and offering expenses payable by Dyne. All of the shares in the offering were sold by Dyne.

Morgan Stanley, Jefferies, Stifel and Guggenheim Securities acted as joint book-running managers for the offering. Oppenheimer & Co. and Raymond James acted as co-managers for the offering.

The offering was made pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024 and became automatically effective upon filing. The offering was made only by means of a prospectus supplement and accompanying prospectus that form a part of the registration statement. A final prospectus supplement relating to and describing the terms of the offering has been filed with the SEC and may be obtained for free by visiting the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus may also be obtained by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by e-mail at GSEquityProspectusDeliver@guggenheimpartners.com.

This press release shall not constitute an offer to sell, or a 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 Dyne Therapeutics

Dyne Therapeutics is a clinical-stage muscle disease company focused on advancing innovative life-transforming therapeutics for people living with genetically driven diseases. With its proprietary FORCE™ platform, Dyne is developing modern oligonucleotide therapeutics that are designed to overcome limitations in delivery to muscle tissue. Dyne has a broad pipeline for serious muscle diseases, including clinical programs for myotonic dystrophy type 1 (DM1) and Duchenne muscular dystrophy (DMD) and a preclinical program for facioscapulohumeral muscular dystrophy (FSHD).

Contacts:

Investors
Amy Reilly
areilly@dyne-tx.com
857-341-1203

Media
Stacy Nartker
snartker@dyne-tx.com
781-317-1938

FAQ

What was the size of Dyne Therapeutics' recent public offering?

Dyne Therapeutics' recent public offering included 12,075,000 shares of common stock.

What was the price per share in Dyne Therapeutics' offering?

The price per share in Dyne Therapeutics' offering was $31.00.

How much did Dyne Therapeutics raise through their public offering?

Dyne Therapeutics raised approximately $374.3 million in gross proceeds.

Which financial institutions managed Dyne Therapeutics' public offering?

Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities acted as joint book-running managers.

When did Dyne Therapeutics file the shelf registration statement with the SEC?

Dyne Therapeutics filed the shelf registration statement with the SEC on March 5, 2024.