Dyne Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Dyne Therapeutics, Inc. (Nasdaq: DYN) has commenced an underwritten public offering of $175,000,000 of shares of its common stock, with the intention to grant the underwriters a 30-day option to purchase up to an additional $26,250,000 of shares of its common stock. 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. The proposed offering is being made pursuant to a shelf registration statement on Form S-3 that was previously filed with and declared effective by the Securities and Exchange Commission (“SEC”).

Insights

Financial Analyst

With Dyne Therapeutics initiating a significant underwritten public offering of $175 million in common stock and an additional purchase option of $26.25 million for underwriters, there are substantial implications for investor valuation of the company. The capital raised typically serves to fund further research and development, commercialization efforts, or to strengthen the company's balance sheet. This move suggests confidence from the underwriters in Dyne's potential, given their willingness to manage the offering, which can be seen as a positive signal to the market.

However, investors should be cautious and consider the potential dilution of their holdings. An increase in the number of shares outstanding can depress the stock price if the market does not perceive the use of proceeds as value-accretive. Furthermore, the company's performance post-offering will be critical. If the funds are utilized effectively, leading to successful drug developments or market expansions, the long-term return could offset the dilution. Conversely, missteps could lead to underperformance relative to expectations.

Market Research Analyst

The biotechnology sector, where Dyne Therapeutics operates, is highly competitive and capital-intensive. The timing and success of clinical trials, regulatory approvals and market adoption are key drivers of a company's financial health and stock performance. The proposed offering indicates that Dyne is seeking to secure a substantial amount of capital, which could be intended to accelerate its pipeline projects or expand its market presence.

Market conditions at the time of the offering play a pivotal role. If investor sentiment is bullish on the biotech sector or on gene therapy companies specifically, Dyne may achieve favorable terms. Market reception to the offering will also reflect the perceived risk and potential of Dyne's technology and pipeline. Stakeholders should monitor the final terms in the prospectus supplement, as these will provide insight into the demand for the offering and the market's valuation of the company.

Biotech Industry Analyst

Dyne Therapeutics' decision to proceed with a public offering is a strategic step typical for clinical-stage companies needing to fund expensive and lengthy drug development processes. Given Dyne's focus on muscle diseases with genetic underpinnings, the funding could significantly advance their research into novel therapeutics, which is a high-stakes area with the potential for substantial rewards.

Investors should assess the company's current clinical pipeline, the competitive landscape and potential market size for its therapies. The success of Dyne's candidates will hinge on clinical efficacy, safety profiles and the ability to navigate the complex regulatory environment. The outcome of these factors will ultimately determine the return on investment from the capital raised through this stock offering.

WALTHAM, Mass., Jan. 03, 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 that it has commenced an underwritten public offering of $175,000,000 of shares of its common stock. Dyne also intends to grant the underwriters a 30-day option to purchase up to an additional $26,250,000 of shares of its common stock. All of the shares in the proposed offering are to be sold by Dyne.

Morgan Stanley, J.P. Morgan, Jefferies and Stifel are acting as joint book-running managers for the offering. Oppenheimer & Co. and Raymond James are acting as co-managers for the 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.

The proposed offering is being made pursuant to a shelf registration statement on Form S-3 that was previously filed with and declared effective by the Securities and Exchange Commission (“SEC”). This offering will be made only by means of a prospectus supplement and accompanying prospectus that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the offering is expected to be filed with the SEC and, if and when filed, copies of the preliminary prospectus supplement relating to the offering may be obtained for free by visiting the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and the 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; 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; 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; or 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. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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).

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements relating to the proposed underwritten public offering, the anticipated terms of the proposed offering, market and other conditions relating to the offering, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” or “would,” or the negative of these terms, or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Dyne may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all and other factors discussed in the “Risk Factors” section of the preliminary prospectus supplement to be filed with the SEC, as well as the risks and uncertainties identified in Dyne’s filings with the SEC, including Dyne’s most recent Form 10-Q and in subsequent filings Dyne may make with the SEC. In addition, the forward-looking statements included in this press release represent Dyne’s views as of the date of this press release. Dyne anticipates that subsequent events and developments will cause its views to change. However, while Dyne may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Dyne’s views as of any date subsequent to the date of this press release.

Contacts:

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

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

FAQ

What is Dyne Therapeutics, Inc.'s ticker symbol?

The ticker symbol for Dyne Therapeutics, Inc. is DYN.

What is the purpose of the public offering announced by Dyne Therapeutics, Inc.?

The purpose of the public offering is to raise funds through the sale of common stock to underwriters.

Who are the underwriters for Dyne Therapeutics, Inc.'s public offering?

Morgan Stanley, J.P. Morgan, Jefferies, and Stifel are acting as joint book-running managers for the offering, while Oppenheimer & Co. and Raymond James are acting as co-managers for the offering.

How can one obtain a copy of the preliminary prospectus supplement for Dyne Therapeutics, Inc.'s offering?

Copies of the preliminary prospectus supplement and accompanying prospectus may be obtained by visiting the SEC’s website at www.sec.gov or by contacting the respective underwriters.