Mineralys Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Mineralys Therapeutics (MLYS) has announced a proposed public offering of $250.0 million of common stock shares. The company plans to grant underwriters a 30-day option to purchase up to an additional $37.5 million of shares at the public offering price, less underwriting discounts and commissions.

The clinical-stage biopharmaceutical company, focused on developing medicines for hypertension, chronic kidney disease (CKD), and obstructive sleep apnea (OSA), will use the net proceeds to fund clinical development of lorundrostat, including research, development, manufacturing, and pre-commercialization activities, as well as working capital and general corporate purposes.

The offering is being managed by joint book-runners BofA Securities, Evercore ISI, Goldman Sachs & Co. , Stifel, and Wells Fargo Securities, with LifeSci Capital as lead manager and H.C. Wainwright & Co. as co-manager.

Positive

• Substantial capital raise of $250.0 million with potential additional $37.5 million
• Proceeds will advance clinical development of lead drug candidate lorundrostat
• Strong syndicate of major investment banks supporting the offering

Negative

• Potential dilution for existing shareholders
• Offering subject to market conditions with no guarantee of completion
• Additional shares in the market may pressure stock price

Insights

Financial Analyst

Mineralys Therapeutics' announced $250 million common stock offering (plus $37.5 million in potential additional shares) represents a significant capital raise relative to the company's $525 million market capitalization. This offering will likely result in substantial dilution for existing shareholders, approximately 47.6% if fully subscribed including the overallotment option.

While dilution of this magnitude typically pressures share prices, the funding is strategically necessary for Mineralys as a clinical-stage biopharmaceutical company. The proceeds will support the clinical development of lorundrostat, their lead candidate targeting hypertension, chronic kidney disease, and obstructive sleep apnea - all conditions with substantial market potential driven by dysregulated aldosterone.

The company has secured strong institutional backing for this offering, with five major financial institutions serving as joint book-running managers (BofA Securities, Evercore ISI, Goldman Sachs, Stifel, and Wells Fargo Securities). This level of banking support suggests institutional confidence in Mineralys' clinical programs.

The capital infusion strengthens Mineralys' financial position to advance lorundrostat through clinical trials and prepare for potential commercialization. However, investors should recognize that while necessary for development, this offering comes with meaningful shareholder dilution that must be offset by future clinical and commercial success to deliver shareholder value.

Biotech Research Specialist

Mineralys' substantial capital raise provides important funding for lorundrostat, their aldosterone synthase inhibitor targeting conditions with significant unmet medical needs. The strategic focus on hypertension, CKD, and sleep apnea represents three distinct market opportunities with overlapping biological mechanisms centered on aldosterone dysregulation.

The allocation of proceeds toward clinical development, manufacturing, and pre-commercialization activities suggests lorundrostat may be advancing toward later-stage trials. For a clinical-stage company focusing on cardiometabolic and renal diseases, securing this level of funding is essential to complete the clinical development pathway through potential regulatory approval.

Hypertension affects approximately 116 million American adults, with resistant hypertension remaining a significant challenge despite multiple available therapies. CKD affects over 37 million Americans, and OSA impacts an estimated 25 million. Targeting the aldosterone pathway provides a potentially differentiated approach to these high-prevalence conditions.

The company's ability to complete this significant offering demonstrates investor confidence in lorundrostat's clinical profile and commercial potential. However, as with any clinical-stage asset, significant development and regulatory hurdles remain before commercialization, and the value creation from this capital raise will ultimately depend on lorundrostat's clinical performance.

RADNOR, Pa., March 10, 2025 (GLOBE NEWSWIRE) -- Mineralys Therapeutics, Inc. (Nasdaq: MLYS), a clinical-stage biopharmaceutical company focused on developing medicines to target hypertension, chronic kidney disease (CKD), obstructive sleep apnea (OSA) and other diseases driven by dysregulated aldosterone, announced today that it has commenced an underwritten public offering of $250.0 million of shares of its common stock. In addition, Mineralys expects to grant the underwriters a 30-day option to purchase up to an additional $37.5 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 Mineralys. 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, Evercore ISI, Goldman Sachs & Co. LLC, Stifel and Wells Fargo Securities are acting as joint book-running managers for the offering. LifeSci Capital is acting as lead manager and H.C. Wainwright & Co. is acting as co-manager for the offering.

Mineralys intends to use the net proceeds from the proposed offering to fund clinical development of lorundrostat, including research and development and manufacturing, and pre-commercialization activities, as well as for working capital and general corporate purposes.

The securities described above are being offered by Mineralys pursuant to a shelf registration statement previously filed and declared effective by the Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may be obtained from: BofA Securities NC1-022-02-25, Attention: Prospectus Department, 201 North Tryon Street, Charlotte, North Carolina 28255-0001 or by email at dg.prospectus_requests@bofa.com; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 36th Floor, New York, New York 10055, by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, via telephone: (866) 471-2526, via fax: 212-902-9316, or via email: prospectus-ny@ny.email.gs.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, via telephone at (415) 364-2720 or via email at syndprospectus@stifel.com; or Wells Fargo Securities, LLC, Attention: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, by telephone at 1-800-645-3751, or by email at wfscustomerservice@wellsfargo.com. Electronic copies of the preliminary prospectus supplement and accompanying prospectus will also be available on the website of the SEC at http://www.sec.gov.

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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Mineralys
Mineralys Therapeutics is a clinical-stage biopharmaceutical company focused on developing medicines to target hypertension, CKD, OSA and other diseases driven by dysregulated aldosterone. Its initial product candidate, lorundrostat, is a proprietary, orally administered, highly selective aldosterone synthase inhibitor that Mineralys Therapeutics is developing for cardiorenal conditions affected by dysregulated aldosterone, including hypertension, CKD and OSA. Mineralys is based in Radnor, Pennsylvania, and was founded by Catalys Pacific.

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 Mineralys’ 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 Mineralys’ filings with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Mineralys 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.

CONTACTS

Investor Relations
investorrelations@mineralystx.com

Media Relations
Tom Weible
Elixir Health Public Relations
Phone: (1) 515-707-9678
Email: tweible@elixirhealthpr.com

FAQ

How much is Mineralys Therapeutics (MLYS) planning to raise in its public offering?

Mineralys is offering $250.0 million of common stock shares, with an additional 30-day option for underwriters to purchase up to $37.5 million more shares.

What will Mineralys Therapeutics use the proceeds from the stock offering for?

The proceeds will fund lorundrostat clinical development, research, manufacturing, pre-commercialization activities, working capital, and general corporate purposes.

Which investment banks are managing the MLYS public offering?

BofA Securities, Evercore ISI, Goldman Sachs & Co. , Stifel, and Wells Fargo Securities are joint book-runners, with LifeSci Capital as lead manager and H.C. Wainwright & Co. as co-manager.

What therapeutic areas does Mineralys Therapeutics (MLYS) focus on?

Mineralys focuses on developing medicines for hypertension, chronic kidney disease (CKD), obstructive sleep apnea (OSA), and other diseases driven by dysregulated aldosterone.