Milestone Pharmaceuticals Announces Pricing of $30.0 Million Public Offering of Common Shares and Pre-Funded Warrants
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Insights
Milestone Pharmaceuticals' recent public offering represents a significant capital infusion for the company, which is expected to raise approximately $30.0 million before underwriting commissions and offering expenses. This move indicates a strategic effort to bolster the company's financial position, likely to fund ongoing research and development activities and potentially to expand commercial operations for their cardiovascular therapies.
Analysts would scrutinize the offering price of $1.50 per share and the use of pre-funded warrants at $1.49, which is slightly below the public offering price of the shares. The decision to include pre-funded warrants suggests a measure to attract investors who are willing to commit capital now for the option to purchase shares later at a set price, a common tactic in biopharmaceutical financing to secure funding while minimizing immediate dilution of existing shares.
The grant of a 30-day option for underwriters to purchase additional shares could lead to further capital if exercised, but also indicates the company's anticipation of strong demand for the offering. Monitoring the closing of this offering and the subsequent share performance will be crucial, as it will provide insights into investor confidence in Milestone's value proposition and future prospects.
The biopharmaceutical sector is highly competitive, with success often hinging on the ability to bring innovative treatments to market swiftly. Milestone Pharmaceuticals' focus on cardiovascular medicine places them in a therapeutic area with a high demand due to the global prevalence of heart-related conditions. The additional funds could support Milestone's pipeline acceleration, which may improve their standing in the industry.
It is important to consider the investor sentiment towards the sector and the company's specific pipeline. The offering's timing and pricing strategy could reflect the current market conditions and investor appetite for risk in the biopharmaceutical space. A successful offering could signal market confidence, whereas a struggle to close the offering might suggest the need for Milestone to recalibrate its strategy.
Furthermore, the impact on the company's stock performance post-offering will be a key indicator of the market's reception to this capital raise. A positive reception could lead to a bullish outlook, while a negative response might require the company to address potential concerns from investors regarding the company's growth trajectory and the valuation of its shares.
Raising capital is a critical step for biopharmaceutical companies like Milestone Pharmaceuticals, which require substantial funding to advance clinical trials, navigate regulatory pathways and eventually bring new drugs to market. The success of this offering could be a bellwether for the company's ability to secure the necessary resources to continue its research and development efforts.
One aspect to consider is the stage of development of the company's lead drug candidates. If the candidates are in later-stage clinical trials with promising data, the infusion of capital could expedite the path to potential commercialization. Conversely, if the candidates are in early stages, the funds might be allocated to more foundational research, which carries higher risk but is essential for long-term success.
It's also essential to understand the competitive landscape of cardiovascular treatments and how Milestone's offerings might fit into the current market. The company's ability to differentiate its products and address unmet medical needs will be a significant factor in its potential to capture market share and generate a return on investment for stakeholders.
MONTREAL and CHARLOTTE, N.C., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Milestone® Pharmaceuticals Inc. (“Milestone”) (Nasdaq: MIST), a biopharmaceutical company focused on the development and commercialization of innovative cardiovascular medicines, today announced the pricing of its previously announced underwritten public offering (the “Offering”) of (i) 16,666,667 of its common shares (the “Shares”) at a public offering price of
Milestone intends to use the net proceeds from the Offering to continue the development of etripamil in its lead indication of paroxysmal supraventricular tachycardia (PSVT) and its subsequent indication of atrial fibrillation with rapid ventricular rate (AFib-RVR), as well as for working capital and other general corporate purposes.
Piper Sandler & Co. is acting as sole bookrunning manager for the Offering. H.C. Wainwright & Co. is acting as lead manager for the Offering.
The Securities are being offered by Milestone pursuant to a shelf registration statement on Form S-3 (333-261049), including a base prospectus, that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on February 2, 2022. A preliminary 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. A final prospectus supplement relating to the Offering will be filed with the SEC. A copy of the final prospectus supplement and the accompanying prospectus relating to the Offering may be obtained, when available, from: Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, or by telephone at (800) 747-3924, or by email at prospectus@psc.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any Securities, 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 Milestone Pharmaceuticals
Milestone Pharmaceuticals Inc. (Nasdaq: MIST) is a biopharmaceutical company developing and commercializing innovative cardiovascular medicines to benefit people living with certain heart conditions. Milestone recently submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for etripamil for treatment of an abnormal heart rhythm, paroxysmal supraventricular tachycardia or PSVT.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "continue," "could," "demonstrate," "designed," "develop," "estimate," "expect," "may," "pending," "plan," "potential," "progress," "will" and similar expressions (as well as other words or expressions referencing future events, conditions, or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on Milestone's expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from these forward-looking statements. Forward-looking statements contained in this press release include statements regarding the timing and closing of the Offering, and the anticipated use of proceeds from the Offering. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, whether Milestone’s future interactions with the FDA will have satisfactory outcomes; whether and when, if at all, Milestone’s NDA for etripamil will be accepted for review and, if accepted for review, approved by the FDA; whether the FDA will require additional trials or data which may significantly delay and put at risk Milestone’s efforts to obtain approval and may not be successful; the risks inherent in biopharmaceutical product development and clinical trials, including the lengthy and uncertain regulatory approval process; uncertainties related to the timing of initiation, enrollment, completion, evaluation and results of Milestone’s clinical trials; risks and uncertainty related to the complexity inherent in cleaning, verifying and analyzing trial data; and whether the clinical trials will validate the safety and efficacy of etripamil for PSVT or other indications, among others, general economic, political, and market conditions, including deteriorating market conditions due to investor concerns regarding inflation and Russian hostilities in Ukraine and overall fluctuations in the financial markets in the United States and abroad, risks related to pandemics and public health emergencies, and risks related the sufficiency of Milestone's capital resources and its ability to raise additional capital in the current economic climate. These and other risks are set forth in Milestone's filings with the U.S. Securities and Exchange Commission, including in the preliminary prospectus related to the Offering, annual report on Form 10-K for the year ended December 31, 2022 and quarterly report on Form 10-K for the quarterly period ended September 30, 2023, under the caption "Risk Factors," as such discussion may be updated from time to time by subsequent filings, we may make with the U.S. Securities and Exchange Commission. Milestone cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Except as required by law, Milestone assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.
Contact
Kim Fox, Vice President, Communications
kfox@milestonepharma.com
704-803-9295
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