Intra-Cellular Therapies Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Intra-Cellular Therapies, Inc. announces a proposed public offering of $500 million of common stock, with the underwriters having a 30-day option to purchase additional shares. The offering is led by J.P. Morgan, Leerink Partners, BofA Securities, Morgan Stanley, and RBC Capital Markets. The company filed a shelf registration statement with the SEC and will provide a preliminary prospectus supplement for the offering.

Insights

Financial Analyst

Intra-Cellular Therapies' decision to launch a public offering of common stock totaling $500 million is a move that directly affects capital structure and investor dilution. Traditionally, such offerings are undertaken to raise capital for expansion, research and development, or to strengthen the balance sheet. Depending on how the market perceives the use of proceeds, the stock price may react either positively, as a sign of growth, or negatively, due to the dilution of existing shares. Given the size of the offering and the fact that a 15% additional purchase option for underwriters exists, investors should closely monitor the final terms disclosed in the prospectus supplement. The involvement of high-profile underwriters suggests a robust interest in the offering, potentially indicating positive market sentiment towards Intra-Cellular Therapies' growth prospects.

Market Research Analyst

The biopharmaceutical sector is highly competitive and capital-intensive. Companies like Intra-Cellular Therapies, which specialize in CNS disorders, must continuously invest in research and development to stay ahead. A successful offering could bolster the company's ability to finance new projects and accelerate pipeline development. For retail investors, it's important to consider how this offering may influence the company's position against its competitors. If the capital is efficiently deployed, Intra-Cellular could enhance its market share and long-term growth potential, which may be reflected in the stock's performance over time.

Pharmaceutical Industry Expert

CNS disorders represent an area with a significant unmet medical need, which makes companies like Intra-Cellular Therapies pivotal players in the pharmaceutical landscape. If the capital raised through this stock offering is allocated toward the advancement of promising treatments, it could lead to breakthrough therapies that not only benefit patients but also create substantial value for shareholders. Investors should observe the company's pipeline progression and regulatory milestones, as these factors will be instrumental in determining the long-term impact of today's financial maneuver.

NEW YORK, April 16, 2024 (GLOBE NEWSWIRE) -- Intra-Cellular Therapies, Inc. (Nasdaq: ITCI) (“Intra-Cellular Therapies”), a biopharmaceutical company focused on the development and commercialization of therapeutics for central nervous system (CNS) disorders, today announced that it has commenced an underwritten public offering of $500 million of shares of its common stock. In connection with the offering, Intra-Cellular Therapies intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering. All of the shares in the offering will be sold by Intra-Cellular Therapies.

J.P. Morgan, Leerink Partners, BofA Securities, Morgan Stanley and RBC Capital Markets are acting as joint book-running managers for the offering. 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.

The public offering will be made pursuant to a shelf registration statement on Form S-3 (including a base prospectus) that was filed today with the Securities and Exchange Commission (the “SEC”) and became effective upon filing. A preliminary prospectus supplement relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. The offering is being made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-866-803-9204, or by email at prospectus-eq_fi@jpmchase.com; Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, (800) 808-7525 ext. 6105, syndicate@leerink.com; BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC, 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by email: prospectus@morganstanley.com; or RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, 8th Floor, New York, NY 10281, by telephone at (877) 822-4089, or by emailing equityprospectus@rbccm.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, nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Intra-Cellular Therapies

Intra-Cellular Therapies is a biopharmaceutical company founded on Nobel prize-winning research that allows us to understand how therapies affect the inner-workings of cells in the body. The company leverages this intracellular approach to develop innovative treatments for people living with complex psychiatric and neurologic diseases.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements, other than statements of historical fact, regarding, among other things, the proposed public offering of common stock. Intra-Cellular Therapies often uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “planned,” “continue,” “guidance,” and similar expressions to identify forward-looking statements. Actual results, performance or experience may differ materially from those expressed or implied by any forward-looking statement as a result of various risks, uncertainties and other factors, including, but not limited to: uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other risks and uncertainties that are described under the heading “Risk Factors” in Intra-Cellular Therapies’ preliminary prospectus supplement to be filed with the SEC, Intra-Cellular Therapies’ most recent Annual Report on Form 10-K or in subsequent filings that it makes with the Securities and Exchange Commission. As a result of risks and uncertainties that Intra-Cellular Therapies faces, the results or events indicated by any forward-looking statement may not occur. Intra-Cellular Therapies cautions you not to place undue reliance on any forward-looking statement. In addition, any forward-looking statement in this press release represents Intra-Cellular Therapies’ views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Intra-Cellular Therapies disclaims any obligation to update any forward-looking statement, except as required by applicable law.

Contact

Intra-Cellular Therapies, Inc.
Juan Sanchez, M.D.
Vice President, Corporate Communications and Investor Relations
646-440-9333

Media Inquiries:

Burns McClellan, Inc.
Cameron Radinovic
cradinovic@burnsmc.com
212-213-0006

 

FAQ

What is Intra-Cellular Therapies announcing regarding its common stock?

Intra-Cellular Therapies is proposing a public offering of $500 million of its common stock.

Who are the underwriters for Intra-Cellular Therapies' public offering?

The underwriters for the offering are J.P. Morgan, Leerink Partners, BofA Securities, Morgan Stanley, and RBC Capital Markets.

What is the 30-day option granted to the underwriters in Intra-Cellular Therapies' offering?

The underwriters have a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering.

Where can investors obtain more information about Intra-Cellular Therapies' public offering?

Investors can obtain more information about the offering from the SEC's website or the respective underwriters involved in the offering.

Is the public offering subject to any conditions?

Yes, the offering is subject to market and other conditions, and there is no assurance as to whether or when the offering may be completed.