Longboard Pharmaceuticals Announces Pricing of Upsized Public Offering of Common Stock

Rhea-AI Summary

Longboard Pharmaceuticals, a clinical-stage biopharmaceutical company (Nasdaq: LBPH), announced the pricing of an upsized underwritten public offering of 10,000,000 shares of its voting common stock at $21.00 per share. The gross proceeds are expected to be $210.0 million. The offering is expected to close on January 8, 2024. Cantor and Citigroup are acting as joint lead book-running managers for the offering. The offering is being made pursuant to two shelf registration statements on Form S-3, including base prospectuses, previously filed with the SEC and declared effective on October 11, 2022 and August 11, 2023, respectively, as well as a related registration statement on Form S-3MEF.

Insights

Financial Analyst

The upsized public offering from Longboard Pharmaceuticals is a significant event that warrants attention from a financial perspective. The offering of 10 million shares at $21.00 each translates to a substantial inflow of capital, with gross proceeds expected to reach $210 million. This capital infusion could provide Longboard with the necessary resources to advance its clinical programs and potentially accelerate the development of treatments for neurological diseases. The underwriters' option to purchase additional shares could further increase the total capital raised, enhancing the company's financial flexibility.

It is crucial to note the role of the joint lead book-running managers and lead managers in this process, as their reputation and expertise in managing such offerings can impact investor confidence. Furthermore, the use of shelf registration statements indicates a pre-planned strategy for capital raising, which can be perceived as a sign of management's foresight and preparedness. Investors will be closely monitoring the deployment of these funds, as efficient use could lead to value creation, while any missteps could dilute current shareholdings and possibly affect the stock's performance.

Market Research Analyst

Longboard Pharmaceuticals' public offering is positioned within a competitive landscape of biopharmaceutical companies where funding is critical for sustaining long-term research and development. The decision to upsize the offering reflects a positive reception from the market or a higher than anticipated demand for the company's shares. This could be indicative of investor confidence in Longboard's pipeline and its potential to address unmet needs in the neurological space.

However, the impact on the stock market will depend on the perception of Longboard's growth prospects and the anticipated use of proceeds. If the market believes the funds will catalyze significant advancements in their clinical trials or lead to successful drug development, this could positively influence the stock's valuation. Conversely, if investors are concerned about potential overvaluation or dilution of shares, this could exert downward pressure on the stock price. The timing of the offering, market conditions and investor sentiment at the time of closing will also play critical roles in determining the immediate financial impact.

Biotech Industry Analyst

The biotech industry, especially in the neurological sector, is research-intensive and often requires substantial capital for drug development and clinical trials. Longboard Pharmaceuticals' move to raise capital through a public offering is a common strategy within the industry, aimed at funding these expensive and lengthy processes. The company's focus on developing transformative medicines for neurological diseases places it in a high-stakes area of biotech, where successful drug candidates can be significantly rewarding both financially and in terms of patient impact.

Investors and industry stakeholders will be evaluating the potential return on investment based on Longboard's current clinical pipeline and the success rates of similar companies in the sector. It's important to consider the inherent risks of drug development, including the possibility of clinical trial failures, regulatory hurdles and the long timelines before potential product commercialization. The outcome of these investments will not only affect Longboard's financial health but also have broader implications for the biotech industry's approach to funding and valuation of R&D-centric companies.

LA JOLLA, Calif.--(BUSINESS WIRE)-- Longboard Pharmaceuticals, Inc. (Nasdaq: LBPH), a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases, today announced the pricing of an upsized underwritten public offering of 10,000,000 shares of its voting common stock at a price to the public of $21.00 per share. The gross proceeds to Longboard from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be $210.0 million. In addition, Longboard has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of voting common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on January 8, 2024, subject to satisfaction of customary closing conditions.

Cantor and Citigroup are acting as joint lead book-running managers for the offering, and Wedbush PacGrow and H.C. Wainwright & Co. are acting as lead managers for the offering.

The offering is being made pursuant to two shelf registration statements on Form S-3, including base prospectuses, which were previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective on October 11, 2022 and August 11, 2023, respectively, as well as a related registration statement on Form S-3MEF. A preliminary prospectus supplement and accompanying prospectuses relating to the offering were filed with the SEC and are available for free on the SEC’s website located at http://www.sec.gov. A final prospectus supplement and accompanying prospectuses relating to the offering will be filed with the SEC and will be available for free on the SEC’s website located at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectuses relating to the offering, when available, may be obtained from: Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, New York, NY 10022, or by e-mail at prospectus@cantor.com; or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at (800) 831-9146.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction 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 Longboard Pharmaceuticals

Longboard Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. Longboard is working to advance a portfolio of centrally acting product candidates designed to be highly selective for specific G protein-coupled receptors (GPCRs). Longboard’s small molecule product candidates are based on more than 20 years of GPCR research. Longboard plans to advance bexicaserin (LP352), an oral, centrally acting 5-hydroxytryptamine 2C (5-HT2C) receptor superagonist, with no observed impact on 5-HT2B and 5-HT2A receptor subtypes, into a global Phase 3 program. In January 2024, Longboard reported topline data from a Phase 1b/2a clinical trial, the PACIFIC Study, evaluating bexicaserin in participants ages 12 to 65 years old with a broad range of Developmental and Epileptic Encephalopathies (DEEs), including Lennox-Gastaut syndrome, Dravet syndrome and other DEEs. Longboard is also evaluating LP659, an oral, centrally acting, sphingosine-1-phosphate (S1P) receptor subtypes 1 and 5 modulator, which is in development for the potential treatment of rare neuroinflammatory conditions. Longboard has initiated a Phase 1 single-ascending dose (SAD) clinical trial for LP659 in healthy volunteers, with topline data expected in the first half of 2024.

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, Longboard’s expectations regarding the timing and completion of the offering, expected gross proceeds from the offering and expected timing for topline data. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “expects,” “may,” “will,” “potential” “focused on,” “working to,” “designed to,” “plans to” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Longboard’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 Longboard’s ongoing and planned clinical trials and its business in general, macroeconomic events stemming from evolving geopolitical developments such as the conflicts in Ukraine and the Middle East and the other risks described in Longboard’s filings with the SEC, including under the heading “Risk Factors” contained therein, as well as the risks identified in the registration statements and the preliminary prospectus supplement relating to the proposed public offering. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Longboard 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/20240103727932/en/

Corporate Contact:

Megan E. Knight

Head of Investor Relations

IR@longboardpharma.com

858.789.9283

Source: Longboard Pharmaceuticals, Inc.

FAQ

What is the company name and ticker symbol mentioned in the press release?

The company mentioned in the press release is Longboard Pharmaceuticals, Inc. and the ticker symbol is LBPH.

What is the pricing of the underwritten public offering mentioned in the press release?

The pricing of the underwritten public offering is $21.00 per share.

Who are the joint lead book-running managers for the offering mentioned in the press release?

Cantor and Citigroup are acting as joint lead book-running managers for the offering.

What are the expected gross proceeds from the offering mentioned in the press release?

The expected gross proceeds from the offering are $210.0 million.

When is the offering expected to close as per the press release?

The offering is expected to close on January 8, 2024.

Where can one obtain copies of the final prospectus supplement and the accompanying prospectuses relating to the offering as mentioned in the press release?

Copies of the final prospectus supplement and the accompanying prospectuses relating to the offering, when available, may be obtained from Cantor Fitzgerald & Co. and Citigroup.

What are the registration statements mentioned in the press release?

The offering is being made pursuant to two shelf registration statements on Form S-3, including base prospectuses, previously filed with the SEC and declared effective on October 11, 2022 and August 11, 2023, as well as a related registration statement on Form S-3MEF.