Janux Therapeutics Announces Pricing of $296.5 Million Underwritten Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Janux Therapeutics, Inc. (Nasdaq: JANX) announced the pricing of a public offering, including shares of common stock and pre-funded warrants, to raise approximately $296.5 million. The offering price is $46.50 per share, with additional shares available for purchase by underwriters.

Positive

• None.

Negative

• The offering may dilute existing shareholders' ownership due to the issuance of additional shares at a price lower than the current market value.

Insights

Financial Analyst

The announcement by Janux Therapeutics of its public offering is a significant event that calls for an analysis of its financial implications. The pricing of over 4.4 million shares at $46.50 per share, along with pre-funded warrants, is expected to generate approximately $296.5 million in gross proceeds. This influx of capital is substantial for a clinical-stage biopharmaceutical company, which typically requires significant investment for research and development. The decision to grant underwriters a 30-day option to purchase additional shares could further increase the capital raised, depending on the demand and market conditions.

This capital raise is indicative of the company's growth strategy and its confidence in its proprietary TRACTr and TRACIr platforms. Investors will be interested in how these funds will be allocated, likely towards advancing clinical trials, expanding the company's pipeline and accelerating the path to potential commercialization. The offering's success and the subsequent deployment of capital could have a notable impact on the company's stock performance and market valuation in the short to medium term.

Medical Research Analyst

From a medical research standpoint, Janux Therapeutics' capital raise through this public offering is pivotal for the progression of its immunotherapy platforms. The TRACTr and TRACIr technologies are designed to activate T cells and immunomodulators selectively within the tumor microenvironment, which could potentially offer a more targeted and less toxic treatment for cancer patients. The funding could significantly impact the company's ability to conduct necessary clinical trials to prove efficacy and safety, which are critical hurdles in the drug development process.

It's also important to note that the success of these trials could set a precedent in the field of immunotherapy, possibly influencing the direction of future research and development. The clinical outcomes and the ability to meet regulatory milestones will be closely watched by stakeholders, as these factors will directly affect the company's valuation and the potential return on investment.

Market Research Analyst

Assessing the broader market implications, Janux Therapeutics' public offering should be viewed in the context of the biopharmaceutical sector's current investment climate. The sector has seen increased investor interest in companies developing innovative treatments, particularly in the oncology space. Janux's focus on novel immunotherapies places it within a highly competitive but rapidly growing market segment.

The decision to raise capital through a public offering rather than private funding sources suggests confidence in public market support and may reflect a strategic move to enhance the company's visibility and credibility. The pricing of the offering and the response from investors will provide insights into market sentiment towards emerging biopharmaceutical companies and their technologies. The outcome of this offering could influence not just Janux's future but also the investment patterns in the sector.

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 pricing of an underwritten public offering of 4,440,851 shares of its common stock at a public offering price of $46.50 per share and pre-funded warrants to purchase 1,935,483 shares of common stock at a price of $46.499 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, are expected to be approximately $296.5 million. In addition, Janux has granted the underwriters a 30-day option to purchase up to an additional 956,450 shares of its common stock. All of the shares to be sold in the offering are to be sold by Janux. The offering is expected to close on or about March 4, 2024, subject to customary closing conditions.

BofA Securities, TD Cowen, Cantor Fitzgerald & Co. and William Blair & Company, L.L.C. are acting as joint book-running managers for the offering. BTIG, LLC and Wedbush PacGrow are acting as the lead 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 are being offered by the company pursuant to a Registration Statement on Form S-3 previously filed and declared effective by the Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be 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, when available, 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; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by email at Prospectus_ECM@cowen.com or by telephone at (833) 297-2926; Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 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, lung, head and neck, and renal cancers.

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 timing, size, terms and completion of the proposed public offering, the anticipated use of proceeds therefrom and from the grant of the option to purchase additional shares. 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/20240228758808/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

What is the ticker symbol for Janux Therapeutics, Inc.?

The ticker symbol for Janux Therapeutics, Inc. is JANX.

How many shares of common stock are included in the public offering?

The public offering includes 4,440,851 shares of common stock.

What is the offering price per share in the public offering?

The offering price per share in the public offering is $46.50.

How much is Janux expected to raise from the public offering?

Janux is expected to raise approximately $296.5 million from the public offering.

Is there an option for underwriters to purchase additional shares?

Yes, underwriters have a 30-day option to purchase up to an additional 956,450 shares of common stock.

Who will be selling the shares in the offering?

All of the shares to be sold in the offering are by Janux.