Janux Therapeutics Announces Closing of Underwritten Public Offering of Common Stock and Pre-Funded Warrants Including Full Exercise of Underwriters’ Option to Purchase Additional Shares for Total Gross Proceeds of $402.5 Million

Rhea-AI Summary

Janux Therapeutics (NASDAQ: JANX) has successfully closed its previously announced public offering, raising $402.5 million in gross proceeds. The offering included 6,150,793 shares of common stock at $63.00 per share and 238,095 pre-funded warrants at $62.999 per warrant. The underwriters exercised their full option to purchase an additional 833,333 shares.

The offering was managed by several investment banks, including BofA Securities, TD Cowen, Stifel, Cantor, and William Blair as joint book-running managers. The company plans to use the proceeds to advance its clinical development pipeline and for general corporate purposes.

Positive

• Successful raising of $402.5 million in gross proceeds strengthening the company's financial position
• Full exercise of underwriters' option indicating strong market demand
• Funds will support clinical development pipeline advancement

Negative

• Potential dilution of existing shareholders due to new share issuance
• Significant increase in outstanding shares may pressure stock price

Insights

Financial Analyst

The successful closing of a $402.5 million public offering significantly strengthens Janux's financial position, providing substantial runway for advancing their clinical pipeline. The high-profile underwriter participation from major firms like BofA Securities and TD Cowen indicates strong institutional interest. At $63 per share, the offering price reflects investor confidence in Janux's TRACTr and TRACIr platforms.

The full exercise of the underwriters' option to purchase additional shares demonstrates robust demand and validates market appetite for Janux's immunotherapy approach. With a market cap of $3.48 billion, this capital raise represents approximately 11.6% of the company's value, providing meaningful dilution-adjusted funding for clinical development without overleveraging the balance sheet.

Medical Research Analyst

This substantial capital infusion positions Janux to accelerate development of their innovative immunotherapy pipeline based on their proprietary TRACTr and TRACIr platforms. These platforms represent a potentially transformative approach to cancer treatment by creating tumor-specific T cell engagers and immunomodulators that aim to enhance efficacy while reducing toxicity compared to conventional immunotherapies.

The strong financial backing will enable broader clinical development programs and potentially faster progression through clinical trials. For a clinical-stage biotech company, having such significant capital resources is important for executing comprehensive clinical studies and potentially bringing multiple candidates through development simultaneously.

SAN DIEGO--(BUSINESS WIRE)-- Janux Therapeutics, Inc. (Nasdaq: JANX) (Janux), a clinical-stage biopharmaceutical company developing a broad pipeline of novel immunotherapies by applying its proprietary technology to its Tumor Activated T Cell Engager (TRACTr) and Tumor Activated Immunomodulator (TRACIr) platforms, today announced the closing of its previously announced underwritten public offering of 6,150,793 shares of its common stock, which includes the exercise in full by the underwriters of their option to purchase up to 833,333 additional shares of common stock, at a public offering price of $63.00 per share and pre-funded warrants to purchase 238,095 shares of common stock at a price of $62.999 per pre-funded warrant, which represents the per share price for the common stock less the $0.001 per share exercise price for each such pre-funded warrant. The aggregate gross proceeds to Janux from the offering, before deducting underwriting discounts and commissions and other estimated offering expenses and excluding the exercise of any pre-funded warrants, were approximately $402.5 million.

BofA Securities, TD Cowen, Stifel, Cantor and William Blair acted as joint book-running managers for the offering. Wedbush PacGrow, LifeSci Capital, BTIG and Jones acted as co-managers for the offering.

The Company intends to use the net proceeds from the offering to advance clinical development of its internal product pipeline and for general corporate purposes.

The securities were offered by the company pursuant to a Registration Statement on Form S-3 filed with the Securities and Exchange Commission (SEC) that became automatically effective upon filing. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC’s website, located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, or by email at dg.prospectus_requests@bofa.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, New York 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, by telephone at (415) 364-2720, or by email at syndprospectus@stifel.com; Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by email at prospectus@cantor.com; or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, by telephone at (800) 621-0687 or by email at prospectus@williamblair.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such 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 Janux Therapeutics, Inc.

Janux is a clinical-stage biopharmaceutical company developing tumor-activated immunotherapies for cancer. Janux’s proprietary technology enabled the development of two distinct bispecific platforms: TRACTr and TRACIr. The goal of both platforms is to provide cancer patients with safe and effective therapeutics that direct and guide their immune system to eradicate tumors while minimizing safety concerns. Janux is currently developing a broad pipeline of TRACTr and TRACIr therapeutics directed at several targets to treat solid tumors. Janux has two TRACTr therapeutic candidates in clinical trials, the first targeting PSMA is in development for prostate cancer, and the second targeting EGFR is being developed for colorectal carcinoma, squamous cell carcinoma of the head and neck, non-small cell lung cancer, renal cell carcinoma, small cell lung cancer, pancreatic ductal adenocarcinoma and triple-negative breast cancer.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “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, the anticipated use of proceeds from the public offering. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon Janux’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with market conditions, the satisfaction of customary closing conditions related to the public offering, and the other risks described in Janux’s filings with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Janux 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241206959675/en/

Investors:

Andy Meyer

Janux Therapeutics

ameyer@januxrx.com

(202) 215-2579

Media:

Jessica Yingling, Ph.D.

Little Dog Communications Inc.

jessica@litldog.com

(858) 344-8091

Source: Janux Therapeutics

FAQ

How much did Janux Therapeutics (JANX) raise in its recent public offering?

Janux Therapeutics raised $402.5 million in gross proceeds through its public offering of common stock and pre-funded warrants.

What was the price per share for JANX's public offering in 2024?

The public offering price was $63.00 per share of common stock and $62.999 for pre-funded warrants.

How many shares did Janux Therapeutics (JANX) sell in its public offering?

Janux sold 6,150,793 shares of common stock, including 833,333 additional shares from the underwriters' option, plus 238,095 pre-funded warrants.

How will Janux Therapeutics use the proceeds from its public offering?

Janux plans to use the net proceeds to advance clinical development of its internal product pipeline and for general corporate purposes.