Disc Medicine Announces Underwritten Offering of Common Stock
Disc Medicine, a clinical-stage biopharmaceutical company (NASDAQ: IRON), announced an underwritten offering of 4,944,000 shares at $36 per share, expecting to raise approximately $178 million. The offering, closing on June 17, 2024, is led by Frazier Life Sciences and Logos Capital, with participation from significant institutional investors. Proceeds will fund ongoing and new clinical research, working capital, and other corporate purposes. Leerink Partners is the sole bookrunner.
- Disc Medicine expects to raise approximately $178 million from the offering.
- The offering is supported by prominent investors including Frazier Life Sciences, Logos Capital, and others.
- Proceeds will fund research and clinical development of current and new product candidates.
- The financing will also support working capital and general corporate purposes.
- Shareholder dilution due to the issuance of 4,944,000 new shares.
- The offering price of $36 per share may not appeal to all current shareholders.
- Underwriting discounts and commissions will reduce the net proceeds from the offering.
Insights
Disc Medicine's recent underwritten offering of common stock is significant for several reasons. The company has priced its offering at
From an investor's perspective, this offering suggests that Disc Medicine is gearing up for significant expansion and development activities. The involvement of prominent institutional investors like Frazier Life Sciences, Logos Capital and Wellington Management indicates strong confidence in the company's potential and strategy. It's essential to note that such offerings can lead to dilution of existing shares, but the expected long-term benefits of increased funding for research and clinical trials could outweigh the immediate dilution impact.
The offering price of
This underwritten offering indicates that Disc Medicine is positioning itself to capitalize on growth opportunities within the hematologic diseases sector. The allocation of proceeds towards clinical development and research initiatives suggests a strategic emphasis on innovation and pipeline expansion.
Investors should consider the competitive landscape of the biopharmaceutical industry, which is highly dynamic and research-intensive. Successful clinical trials and FDA approvals can significantly enhance the company's market position and lead to substantial returns. Conversely, setbacks in clinical trials could impact investor confidence and stock performance negatively.
The participation of well-known institutional investors lends credibility to Disc Medicine's prospects and offers a layer of validation to its strategic direction. As the biopharmaceutical sector is often susceptible to market volatility based on clinical outcomes, investors should stay informed about upcoming milestones and trial results.
The legal framework surrounding Disc Medicine's underwritten offering is robust, given the compliance with SEC regulations and the use of a shelf registration statement on Form S-3. This ensures transparency and regulatory adherence, safeguarding investor interests.
The involvement of established entities such as Leerink Partners as the sole bookrunning manager further underscores the professionalism and compliance standards adhered to in this offering. Investors can have confidence that the securities are being offered within a well-regulated legal environment, minimizing potential legal risks and ensuring adherence to federal securities laws.
Legal due diligence in such offerings is important to maintain investor trust and regulatory compliance, which Disc Medicine appears to uphold effectively through this structured approach.
WATERTOWN, Mass., June 14, 2024 (GLOBE NEWSWIRE) -- Disc Medicine, Inc. (NASDAQ: IRON) (Disc), a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of novel treatments for patients suffering from serious hematologic diseases, today announced the pricing of an underwritten offering of 4,944,000 shares of its common stock at a price of
The financing was led by Frazier Life Sciences and Logos Capital and includes participation from new and existing institutional investors, including Access Biotechnology, Adage Capital Partners LP, Atlas Venture, Janus Henderson Investors, OrbiMed, Paradigm BioCapital, TCGX, Wellington Management, a leading mutual fund, and others.
Disc intends to use the net proceeds from the offering to fund research and clinical development of its current or additional product candidates, as well as for working capital and other general corporate purposes.
Leerink Partners is acting as sole bookrunning manager for the offering.
The securities described above are being offered by Disc pursuant to a shelf registration statement on Form S-3 (No. 333-275652) that was declared effective by the Securities and Exchange Commission (SEC) on November 29, 2023. This offering is being made only by means of a prospectus and prospectus supplement that form a part of the registration statement. A prospectus supplement and accompanying prospectus related to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may also be obtained, when available, by contacting: Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, (800) 808-7525 ext. 6105 or by email at syndicate@leerink.com.
This press release does 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 that state or jurisdiction.
About Disc Medicine
Disc Medicine (NASDAQ: IRON) is a clinical-stage biopharmaceutical company committed to discovering, developing, and commercializing novel treatments for patients who suffer from serious hematologic diseases. We are building a portfolio of innovative, potentially first-in-class therapeutic candidates that aim to address a wide spectrum of hematologic diseases by targeting fundamental biological pathways of red blood cell biology, specifically heme biosynthesis and iron homeostasis.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, express or implied statements related to Disc’s expectations regarding the timing and closing of the offering, and the anticipated use of proceeds from the offering. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release. These risks and uncertainties include fluctuations in Disc’s stock price, changes in market conditions, the satisfaction of customary closing conditions related to the underwritten offering, and other risks identified in our SEC filings, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and in the prospectus supplement related to the offering we will file with the SEC. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. We disclaim any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
Media Contact
Peg Rusconi
Verge Scientific Communications
prusconi@vergescientific.com
Investor Relations Contact
Christina Tartaglia
Stern Investor Relations
christina.tartaglia@sternir.com
FAQ
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