Ultragenyx Announces Pricing of Public Offering of Common Stock and Pre-Funded Warrants
Ultragenyx Pharmaceutical announced the pricing of its public offering of 7,435,898 shares of common stock at $39.00 per share, and pre-funded warrants for 1,538,501 shares at $38.999 each. The company expects to raise $350 million in gross proceeds before expenses and underwriting discounts. Additionally, underwriters have a 30-day option to purchase up to 1,346,153 additional shares at the public offering price. The offering is set to close around June 17, 2024, subject to customary conditions. J.P. Morgan, Goldman Sachs, BofA Securities, and TD Cowen are joint book-running managers.
- Expected gross proceeds of $350 million from the offering.
- Underwriters' 30-day option to purchase additional 1,346,153 shares at the offering price.
- Participation of major financial institutions like J.P. Morgan, Goldman Sachs, BofA Securities, and TD Cowen.
- Potential dilution of existing shareholders due to the issuance of new shares.
- Additional costs and underwriting discounts reducing the net proceeds from the offering.
- Uncertainty until the offering closes around June 17, 2024.
Insights
Ultragenyx's public offering of common stock and pre-funded warrants is a significant move. The company aims to raise
The pricing of
From a short-term perspective, this offering might exert downward pressure on the stock price due to dilution. However, in the long-term, the increased capital can strengthen the company's balance sheet, enabling it to advance its pipeline of therapies for rare diseases more effectively. Investors should weigh the immediate dilution against the potential future gains from successful product developments and market approvals.
It's essential to monitor how the market reacts post-offering and the company's subsequent financial performance to make more informed decisions.
Ultragenyx's decision to raise funds through a public offering and pre-funded warrants reflects its current market strategy and investor sentiment. It shows confidence in its development pipeline and the potential for upcoming milestones. The involvement of major underwriters like J.P. Morgan, Goldman Sachs and BofA Securities adds credibility and suggests robust institutional support.
The structure of the offering, with both common stock and pre-funded warrants, indicates an understanding of investor preferences and diversified risk appetites. Pre-funded warrants, with their near-zero exercise price, are attractive for those seeking to avoid immediate tax obligations related to holding common shares.
The timing of the offering, closing on June 17, 2024, suggests that Ultragenyx is aligning this capital raise with upcoming financial or clinical milestones, which could provide a boost to its stock price if these events are favorable. This strategic timing can also help mitigate the dilution impact as positive news could counterbalance any negative price movements.
Retail investors should note the potential for volatility during this period and consider their own risk tolerance when evaluating investments in Ultragenyx.
NOVATO, Calif., June 13, 2024 (GLOBE NEWSWIRE) -- Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE), a biopharmaceutical company focused on the development and commercialization of novel therapies for serious rare and ultrarare genetic diseases, today announced the pricing of its underwritten public offering of 7,435,898 shares of its common stock at a price to the public of
The offering is expected to close on or about June 17, 2024, subject to satisfaction of customary closing conditions. J.P. Morgan, Goldman Sachs & Co. LLC, BofA Securities, and TD Cowen are acting as joint book-running managers for the offering.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission and became automatically effective on February 21, 2024. This offering is being made solely by means of a prospectus supplement and accompanying prospectus. When available, copies of the final prospectus supplement and the accompanying prospectus related to the offering may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com; Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing Prospectus-ny@ny.email.gs.com; BofA Securities, NC1-002-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attention: Prospectus Department, or by email at dg.prospectus_requests@bofa.com; and TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com.
This press release shall not constitute an offer to sell or the 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 Ultragenyx
Ultragenyx is a biopharmaceutical company committed to bringing novel products to patients for the treatment of serious rare and ultrarare genetic diseases. The company has built a diverse portfolio of approved therapies and product candidates aimed at addressing diseases with high unmet medical need and clear biology for treatment, for which there are typically no approved therapies treating the underlying disease.
The company is led by a management team experienced in the development and commercialization of rare disease therapeutics. Ultragenyx’s strategy is predicated upon time- and cost-efficient drug development, with the goal of delivering safe and effective therapies to patients with the utmost urgency.
Forward-Looking Statements
Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the expected closing of the public offering, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties that could cause the company’s clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties related to market conditions and the completion of the public offering on the agreed terms or at all, and the satisfaction of customary closing conditions related to the proposed public offering. Ultragenyx undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Ultragenyx in general, see Ultragenyx's Registration Statement on Form S-3 filed with the Securities and Exchange Commission on February 21, 2024, as may be amended from time to time, together with its preliminary prospectus supplement and accompanying prospectus and, when available, its final prospectus supplement, and the documents incorporated by reference therein, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 21, 2024, and its subsequent periodic reports filed with the Securities and Exchange Commission.
Contact Ultragenyx Pharmaceutical Inc.
Investors & Media
Joshua Higa
ir@ultragenyx.com
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