Structure Therapeutics Announces Pricing of Upsized $476 Million Public Offering

Rhea-AI Summary

Structure Therapeutics, a clinical-stage biopharmaceutical company (NASDAQ: GPCR), announced the pricing of its upsized public offering. The company is set to offer 9,066,972 American Depositary Shares (ADS) at $52.50 each, aiming for gross proceeds of approximately $476 million before deductions. An additional 1,360,045 ADSs may be purchased by underwriters within 30 days. The offering, managed by major financial institutions including Goldman Sachs and Morgan Stanley, will close on June 7, 2024, contingent on standard conditions.

Positive

• Raised approximately $476 million in gross proceeds.
• The offering price of $52.50 per ADS is substantial.
• Option for underwriters to purchase up to 1,360,045 additional ADSs.
• Joint book-running managers include top financial institutions like Goldman Sachs and Morgan Stanley.

Negative

• Potential shareholder dilution due to the issuance of additional ADSs.
• Underwriting discounts and commissions will reduce net proceeds.
• Dependence on customary closing conditions for finalization.

Insights

Financial Analyst

Structure Therapeutics' public offering of $476 million is a significant financial event. The company will likely use these funds to advance its pipeline of oral small molecule therapeutics for metabolic and cardiopulmonary diseases. This capital inflow provides substantial runway for further research and development, clinical trials and potential commercialization activities.

Investors should note the offering price of $52.50 per ADS and the upsized nature of the offering, which implies strong institutional interest and confidence in the company. However, the issuance of additional shares will dilute existing shareholders' equity. Dilution can be a double-edged sword—while it provides the company with essential funds, it reduces the ownership percentage of current investors and potentially earnings per share (EPS) in the short term.

It’s also essential to consider the involvement of major investment banks like Goldman Sachs, Morgan Stanley and Jefferies as joint book-running managers. Their participation signals credibility and could attract more institutional investors, potentially supporting the stock price post-offering.

For long-term investors, the critical aspect is how effectively Structure Therapeutics will utilize the funds to achieve meaningful milestones in its drug development programs. Success in these areas could significantly enhance the company's valuation.

Market Research Analyst

The substantial capital raised in this public offering could position Structure Therapeutics favorably in the highly competitive biopharmaceutical market. The funds will likely be channeled into advancing their clinical programs, which could accelerate the development of novel therapies for metabolic and cardiopulmonary diseases. This sector is experiencing growing demand due to increasing prevalence of related conditions globally.

Moreover, the upsizing of the offering indicates robust demand from institutional investors, suggesting they believe in the company's potential to deliver innovative treatments. This investor confidence could translate into sustained interest and support for Structure Therapeutics' stock in the market.

However, the market will closely watch how efficiently the company progresses with its clinical trials and regulatory approvals, as these are key drivers of value. Any delays or setbacks in these areas could negatively impact investor sentiment.

It’s worth considering the broader market conditions and investor sentiment towards biopharmaceutical stocks. Currently, the industry is seen as promising but also laden with risks due to the lengthy and costly process of drug development.

SAN FRANCISCO, June 05, 2024 (GLOBE NEWSWIRE) -- Structure Therapeutics Inc. (NASDAQ: GPCR), a clinical-stage global biopharmaceutical company developing novel oral small molecule therapeutics for metabolic and cardiopulmonary diseases, today announced the pricing of its upsized underwritten public offering of 9,066,972 American depositary shares (ADSs), each representing three ordinary shares, at a public offering price of $52.50 per ADS. The aggregate gross proceeds to Structure Therapeutics from the offering are expected to be approximately $476.0 million, before deducting underwriting discounts and commissions and offering expenses. In addition, Structure Therapeutics has granted the underwriters a 30-day option to purchase up to an additional 1,360,045 ADSs at the public offering price, less underwriting discounts and commissions. The offering is expected to close on June 7, 2024, subject to the satisfaction of customary closing conditions.

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

Registration statements relating to these securities have been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on June 5, 2024. Copies of the registration statements can be accessed through the SEC’s website at www.sec.gov. The offering is being made only by means of a written prospectus. Copies of the final prospectus relating to the offering may be obtained, when available, from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-1649, 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; Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525 ext. 6105, or by email at syndicate@leerink.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; or BMO Capital Markets Corp., Attention: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, by telephone at (800) 414-3627, or by email at bmoprospectus@bmo.com.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, 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 Structure Therapeutics
Structure Therapeutics is a science-driven clinical-stage biopharmaceutical company focused on discovering and developing innovative oral small molecule treatments for chronic metabolic and cardiopulmonary conditions with significant unmet medical needs. Utilizing its next generation structure-based drug discovery platform, the company has established a scientifically-driven, GPCR-targeted pipeline, featuring multiple wholly-owned proprietary clinical-stage small molecule compounds designed to surpass the limitations of traditional biologic and peptide therapies and be accessible to more patients around the world.

Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including without limitation, statements concerning the timing, size and completion of the public offering. In addition, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar expressions and their variants, as they relate to the company may identify forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Although the company believes the expectations reflected in such forward-looking statements are reasonable, the company can give no assurance that such expectations will prove to be correct. Readers are cautioned that actual results could differ materially from those expressed or implied in the company’s forward-looking statements due to a variety of risks and uncertainties, which include, without limitation, market risks and uncertainties, the satisfaction of customary closing conditions for an offering of securities and other risk and uncertainties described in the company’s filings with the SEC, including the company’s Annual Report on Form 10-K filed with the SEC on March 8, 2024, Quarterly Report on Form 10-Q filed with the SEC on May 9, 2024, and future reports the company may file with the SEC from time to time. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. The company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Investors:
Danielle Keatley
Structure Therapeutics Inc.
ir@structuretx.com

Media:
Dan Budwick
1AB
Dan@1abmedia.com

FAQ

What is the price of Structure Therapeutics' (GPCR) public offering?

The price of the public offering is $52.50 per American Depositary Share (ADS).

How much does Structure Therapeutics (GPCR) expect to raise from the public offering?

Structure Therapeutics expects to raise approximately $476 million in gross proceeds from the public offering.

When is the closing date for Structure Therapeutics' (GPCR) public offering?

The public offering is expected to close on June 7, 2024, subject to customary closing conditions.

How many additional ADSs can underwriters purchase in Structure Therapeutics' (GPCR) public offering?

Underwriters have the option to purchase up to an additional 1,360,045 ADSs within 30 days.

Which financial institutions are managing Structure Therapeutics' (GPCR) public offering?

The offering is managed by Goldman Sachs, Morgan Stanley, Jefferies, Leerink Partners, Guggenheim Securities, and BMO Capital Markets.