Janux Therapeutics Announces Proposed Public Offering

Rhea-AI Summary

Janux Therapeutics (NASDAQ: JANX), a clinical-stage biopharmaceutical company, has announced a proposed public offering of $300.0 million of common stock shares or pre-funded warrants. The company plans to grant underwriters a 30-day option to purchase up to an additional $45.0 million of shares.

The offering will be managed by multiple joint book-running managers including BofA Securities, TD Cowen, Stifel, Cantor, and William Blair. Janux intends to use the proceeds to advance clinical development of its internal product pipeline and for general corporate purposes. The securities will be offered through a Registration Statement on Form S-3 filed with the SEC.

Positive

• Substantial capital raise of $300 million with potential additional $45 million
• Proceeds will support clinical development pipeline advancement
• Strong syndicate of investment banks supporting the offering

Negative

• Potential dilution for existing shareholders
• Stock offering may put downward pressure on share price

Insights

Financial Analyst

This $300M public offering with an additional $45M option represents a significant capital raise for Janux Therapeutics, amounting to approximately 16% of their current market cap. The timing aligns with their clinical-stage pipeline development needs, particularly for their novel TRACTr and TRACIr platforms.

The involvement of multiple prominent investment banks as joint book-running managers, including BofA Securities and TD Cowen, suggests strong institutional interest. The offering structure, including pre-funded warrants, provides flexibility for certain investors while potentially minimizing immediate dilution impacts.

The automatic effectiveness of their S-3 registration indicates Janux meets the SEC's requirements as a well-known seasoned issuer, which streamlines the offering process. The proceeds will strengthen their balance sheet and support clinical development, though specific allocation details aren't provided.

Biotech Research Analyst

Janux's capital raise comes at a important time as they advance their proprietary immunotherapy platforms. Their TRACTr (T Cell Engager) and TRACIr (Immunomodulator) technologies represent innovative approaches in targeted cancer treatment, with the potential for improved safety profiles compared to conventional immunotherapies.

The substantial size of this offering suggests confidence in their clinical pipeline and technology platforms. For a clinical-stage biotech company, securing significant funding is essential for advancing multiple programs through various clinical trial phases, which typically require substantial capital investment over several years.

This financing strengthens Janux's position in the competitive immunotherapy space, providing runway to achieve key clinical milestones and potentially advance additional programs from their pipeline.

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 that it has commenced an underwritten public offering of $300.0 million of shares of its common stock or, in lieu of common stock issued to certain investors that so choose, pre-funded warrants to purchase shares of its common stock. In addition, Janux expects to grant the underwriters a 30-day option to purchase up to an additional $45.0 million of shares of its common stock at the public offering price, less the underwriting discounts and commissions. All of the securities to be sold in the offering are to be sold by Janux. 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 the actual size or terms of the offering.

BofA Securities, TD Cowen, Stifel, Cantor and William Blair are acting as joint book-running managers for the offering. Wedbush PacGrow, LifeSci Capital, BTIG and Jones are acting 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 are being 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 preliminary 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 preliminary 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; 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 timing, size, terms and completion of the proposed public offering, the anticipated use of proceeds therefrom and 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 proposed 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/20241203439676/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 is Janux Therapeutics (JANX) planning to raise in its public offering?

Janux Therapeutics is planning to raise $300.0 million through a public offering of common stock or pre-funded warrants, with an additional option for underwriters to purchase up to $45.0 million in shares.

What will Janux Therapeutics (JANX) use the proceeds for?

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

Who are the lead underwriters for Janux Therapeutics (JANX) public offering?

The joint book-running managers for the offering are BofA Securities, TD Cowen, Stifel, Cantor, and William Blair.