Ionis announces proposed public offering of common stock

Rhea-AI Summary

Ionis Pharmaceuticals (Nasdaq: IONS) has announced a proposed underwritten public offering of $500.0 million of its common stock, with an option for underwriters to purchase an additional $75.0 million of shares. The company plans to use the net proceeds to fund independent commercial launches, late-stage clinical programs, earlier pipeline programs, and research and development activities, as well as for working capital and general corporate purposes. Morgan Stanley and Goldman Sachs & Co. are acting as joint book-running managers for the offering. The offering is subject to market conditions, and its completion is not guaranteed.

Positive

• Potential to raise up to $575 million in capital
• Funds allocated for commercial launches and clinical programs
• Investment in research and development activities

Negative

• Potential dilution of existing shareholders' equity
• Uncertainty regarding the completion of the offering
• Increased financial obligations for the company

Financial Analyst

Ionis Pharmaceuticals' proposed $500 million public offering of common stock, with an additional $75 million option, signals a significant capital raise. This move could potentially dilute existing shareholders but aims to bolster the company's financial position. The intended use of proceeds for commercial launches, clinical programs and R&D activities suggests a strategic focus on growth and pipeline advancement.

The involvement of Morgan Stanley and Goldman Sachs as joint book-running managers lends credibility to the offering. However, investors should note the market-dependent nature of the offering, as highlighted by the "subject to market and other conditions" clause. This capital injection, if successful, could accelerate Ionis' development timeline and potentially improve its competitive position in the pharmaceutical industry.

Legal Expert

The announcement's legal aspects are important for investors. Ionis has filed a shelf registration statement, which became automatically effective upon filing with the SEC. This streamlines the offering process, allowing Ionis to issue securities quickly when market conditions are favorable. The company's commitment to file a preliminary prospectus supplement and accompanying prospectus demonstrates compliance with SEC regulations.

The disclaimer at the end is a standard legal safeguard, emphasizing that this announcement does not constitute an offer to sell or solicitation to buy securities. It also underscores the importance of proper registration and qualification under applicable securities laws. Investors should review the full prospectus and supplement for comprehensive details about the offering and associated risks.

Market Research Analyst

This offering reflects Ionis' strategic positioning in the biotech market. The substantial $500 million target, with a potential $75 million upsize, indicates confidence in investor appetite for Ionis' stock. The timing suggests the company perceives a favorable market window for raising capital, possibly driven by positive developments in its pipeline or broader market conditions.

The focus on funding commercial launches and late-stage clinical programs hints at upcoming milestones that could significantly impact Ionis' market position. Investors should monitor how this capital infusion affects Ionis' burn rate and timeline to profitability. The success of this offering could also influence investor sentiment towards other biotech firms, potentially signaling a broader trend in the sector's ability to access capital markets.

CARLSBAD, Calif., Sept. 9, 2024 /PRNewswire/ -- Ionis Pharmaceuticals, Inc. (Nasdaq: IONS) today announced a proposed underwritten public offering of $500.0 million of its common stock. Ionis intends to grant the underwriters a 30-day option to purchase up to an additional $75.0 million of shares of its common stock offered in the public offering on the same terms and conditions. Ionis intends to use the net proceeds from the offering to fund its independent commercial launches, late-stage clinical programs, earlier pipeline programs, and research and development activities, as well as for working capital and general corporate purposes. The 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.

Morgan Stanley and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering.

A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission ("SEC") on November 24, 2023, and was automatically effective upon filing. The offering is being made only by means of a written prospectus and a prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC on September 9, 2024, and will be available for free on the SEC's website, located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, or by email at prospectus@morganstanley.com; and Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.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 Ionis Pharmaceuticals, Inc.

For three decades, Ionis has invented medicines that bring better futures to people with serious diseases. Ionis currently has five marketed medicines and a leading pipeline in neurology, cardiology, and other areas of high patient need. As the pioneer in RNA-targeted medicines, Ionis continues to drive innovation in RNA therapies in addition to advancing new approaches in gene editing. A deep understanding of disease biology and industry-leading technology propels our work, coupled with a passion and urgency to deliver life-changing advances for patients.

Forward-looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements include statements regarding, among other things, Ionis' expectations regarding the completion, timing and size of the proposed offering, Ionis' expectations with respect to granting the underwriters a 30-day option to purchase additional shares and Ionis' anticipated use of the net proceeds from the proposed offering. Any statement describing Ionis' goals, expectations, financial or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Words such as "expect," "intends," "will," and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including, but not limited to, those related to Ionis' business and macroeconomic and geopolitical events. These and other risks are described in additional detail in the filings that Ionis makes with the SEC from time to time, including Ionis' annual report on Form 10-K for the year ended December 31, 2023, its subsequently filed quarterly reports on Form 10-Q and the preliminary prospectus supplement related to the proposed offering to be filed with the SEC. Ionis' forward-looking statements involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although Ionis' forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by Ionis. Except as required by law, Ionis undertakes no obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements.

Ionis Pharmaceuticals Investor Contact:
D. Wade Walke, Ph.D. – IR@ionis.com – 760-603-2331

Ionis Pharmaceuticals Media Contact:
Hayley Soffer – media@ionis.com – 760-603-4679

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SOURCE Ionis Pharmaceuticals, Inc.

FAQ

What is the size of Ionis Pharmaceuticals' (IONS) proposed public offering?

Ionis Pharmaceuticals (IONS) has announced a proposed public offering of $500.0 million of its common stock, with an additional option for underwriters to purchase up to $75.0 million of shares.

How does Ionis (IONS) plan to use the proceeds from its public offering?

Ionis (IONS) intends to use the net proceeds to fund independent commercial launches, late-stage clinical programs, earlier pipeline programs, research and development activities, working capital, and general corporate purposes.

Who are the book-running managers for Ionis' (IONS) public offering?

Morgan Stanley and Goldman Sachs & Co. are acting as joint book-running managers for Ionis' (IONS) public offering.

When was the shelf registration statement for Ionis' (IONS) offering filed?

The shelf registration statement for Ionis' (IONS) offering was filed with the SEC on November 24, 2023, and was automatically effective upon filing.