Krystal Biotech Announces Pricing of $200 Million Public Offering of Common Stock

Rhea-AI Summary

Krystal Biotech (NASDAQ: KRYS) announced a public offering of 2,666,667 shares at $75.00 each, with gross proceeds expected to reach approximately $200 million. The offering, set to close around December 3, 2021, includes a 30-day option for underwriters to purchase an additional 400,000 shares. Proceeds will fund commercialization efforts for VYJUVEK, advance clinical and preclinical developments for other therapies, and enhance manufacturing capabilities. Goldman Sachs, BofA Securities, Cowen, and William Blair are managing the offering.

Positive

• Expected gross proceeds of approximately $200 million to support commercialization and clinical development.
• Use of funds includes potential commercialization of VYJUVEK for dystrophic epidermolysis bullosa.
• Advancement in developing therapies for TGM1-deficient ARCI, cystic fibrosis, and alpha-1 antitrypsin deficiency.

Negative

• Potential dilution of existing shares due to the public offering.

PITTSBURGH, Nov. 30, 2021 (GLOBE NEWSWIRE) -- Krystal Biotech, Inc. (NASDAQ: KRYS) (the “Company”), the leader in redosable gene therapies for rare diseases, today announced that it has priced the previously announced underwritten public offering of 2,666,667 shares of its common stock, at a public offering price of $75.00 per share. The Company and certain selling stockholders granted the underwriters a 30-day option to purchase up to an additional 400,000 shares of the Company’s common stock offered in the public offering. The gross proceeds to the Company from this offering are expected to be approximately $200 million, before deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company. All of the shares to be sold in the proposed offering will be sold by the Company other than up to 200,000 shares of the Company’s common stock that may be sold by the selling stockholders in connection with the exercise of the underwriters’ option to purchase additional shares. The offering is expected to close on or about December 3, 2021, subject to satisfaction of customary closing conditions.

Goldman Sachs & Co. LLC, BofA Securities, Cowen and William Blair are acting as the book-running managers for the offering. Chardan is acting as lead manager for the offering.

The Company currently intends to use the net proceeds from this offering, together with its existing cash, cash equivalents and short-term investments as follows: (i) to prepare for potential commercialization of VYJUVEK^TM for dystrophic epidermolysis bullosa, if approved; (ii) to advance the clinical development of KB105 in TGM1-deficient ARCI and preclinical development of KB104 for Netherton syndrome; (iii) to advance development of KB407 for cystic fibrosis and KB408 for alpha-1 antitrypsin deficiency; (iv) to accelerate the Company’s emerging respiratory pipeline; (v) to further invest in technology platform development, including exploration of additional routes of administration to target new organ systems and novel transgene payloads; (vi) to complete development of the Company’s second good manufacturing practices certified manufacturing facility and commencement of operations of that facility; and (vii) for working capital and general corporate purposes, including research and development expenses and capital expenditures. The Company will not receive any proceeds from the sale of any shares by the selling stockholders.

The offering is being made pursuant to a “shelf” registration statement on Form S-3 (File No. 333-237983) that became effective upon filing with the Securities and Exchange Commission (“SEC”) on May 4, 2020 and the base prospectus contained therein. A preliminary prospectus supplement relating to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website at http://www.sec.gov. A final prospectus supplement and the accompanying base prospectus relating to the offering and the shares of common stock being offered will be filed with the SEC. Before you invest, you should read the prospectus in the registration statement, the preliminary prospectus supplement, and other documents the Company has filed with the SEC for more complete information about the Company and this offering. Copies of the registration statement, the final prospectus supplement and accompanying base prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or, when available, by contacting: Goldman Sachs & Co. LLC, at Prospectus Department, 200 West Street, New York, New York 10282, by telephone at 866-471-2526, by facsimile at 212-902-9316 or by e-mail at prospectusgroup-ny@ny.emails.gs.com; BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, Attention: Prospectus Department, or email: dg.prospectus_requests@bofa.com; Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Attn: Prospectus Department, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com; or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, by telephone at (800) 621-0687, or by email at prospectus@williamblair.com.

This announcement is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy any securities of the Company, which is made only by means of a prospectus supplement and related base prospectus, nor will there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Krystal Biotech
Krystal Biotech, Inc. (NASDAQ: KRYS) is a clinical-stage gene therapy company leveraging its novel, redosable gene therapy platform and in-house manufacturing capabilities to develop therapies to treat serious rare diseases.

Forward-Looking Statements
This press release contains forward-looking statements and information, including with respect to the offering and the intended use of the proceeds of the offering. The use of words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “future,” “potential,” or “continue,” and other similar expressions, are intended to identify forward-looking statements. Although the Company’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, among others: the Company’s ability to satisfy the closing conditions of the offering, the timing or occurrence of the closing, prevailing market conditions, the anticipated use of the proceeds of the offering which could change as a result of market conditions or for other reasons, and those other risks detailed from time to time under the caption “Risk Factors” and elsewhere in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in its Quarterly Report on Form 10-Q for the three months ended September 30, 2021, and in future SEC filings and reports of the Company. The Company undertakes no duty or obligation to update any forward-looking statements as a result of new information, future events or changes in its expectations or circumstances.

CONTACTS:

Investors:
Whitney Ijem
wijem@krystalbio.com 

Source: Krystal Biotech, Inc.

FAQ

What is the stock offering price for Krystal Biotech (KRYS)?

The stock offering price for Krystal Biotech is $75.00 per share.

How many shares of Krystal Biotech are being offered in the public offering?

A total of 2,666,667 shares of Krystal Biotech are being offered.

What are the expected gross proceeds from the Krystal Biotech offering?

The expected gross proceeds from the offering are approximately $200 million.

What will Krystal Biotech do with the proceeds from the offering?

The proceeds will be used to support commercialization efforts, advance clinical developments, and enhance manufacturing capabilities.

When is the closing date for the Krystal Biotech stock offering?

The offering is expected to close on or about December 3, 2021.