Rocket Pharmaceuticals Announces Pricing of Upsized Public Offering of Common Stock

Rhea-AI Summary

Rocket Pharmaceuticals (NASDAQ: RCKT) has announced the pricing of an upsized public offering of 13,200,000 shares of common stock at $12.50 per share. The offering is expected to generate gross proceeds of $165 million before deducting underwriting costs and expenses. The company has granted underwriters a 30-day option to purchase up to an additional 1,980,000 shares. The offering is anticipated to close around December 12, 2024. Morgan Stanley, Leerink Partners, and Cantor are serving as joint book-running managers, with LifeSci Capital acting as lead manager.

Positive

• Expected gross proceeds of $165 million to strengthen company's financial position
• Successful upsizing of the offering indicates strong market interest
• Additional potential proceeds from 1,980,000 share overallotment option

Negative

• Significant shareholder dilution from 13.2 million new shares
• Potential additional dilution from 1.98 million overallotment shares
• Stock price pressure from $12.50 per share offering price

Insights

Financial Analyst

The $165 million upsized public offering at $12.50 per share represents a significant capital raise for Rocket Pharmaceuticals. The pricing reflects a 14% discount to recent trading levels, which is within typical ranges for biotech secondary offerings. This capital injection substantially strengthens their balance sheet, providing important funding for their late-stage genetic therapy pipeline development. The participation of major investment banks like Morgan Stanley and Leerink Partners adds credibility to the offering. The additional 1.98M share option could potentially bring in another $24.75 million if exercised. This financing should extend their operational runway and support upcoming clinical milestones, though it does create immediate dilution for existing shareholders.

Biotech Research Analyst

This capital raise comes at a strategic time for Rocket Pharmaceuticals as they advance their genetic therapy pipeline for rare disorders. The substantial size of the offering indicates strong institutional interest and confidence in their development programs. With multiple late-stage candidates in development, this funding will be important for supporting ongoing clinical trials and potential commercialization preparations. The company's focus on rare disorders with high unmet needs positions them well in a valuable market segment. However, investors should note that while the funding reduces near-term financial risk, the company still faces typical clinical development and regulatory hurdles common in the biotech sector.

CRANBURY, N.J.--(BUSINESS WIRE)-- Rocket Pharmaceuticals, Inc. (NASDAQ: RCKT), a fully integrated, late-stage biotechnology company advancing a sustainable pipeline of genetic therapies for rare disorders with high unmet need, announced today the pricing of an upsized underwritten public offering of 13,200,000 shares of its common stock at a public offering price of $12.50 per share. The gross proceeds to Rocket from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be $165 million. All shares in the offering are to be sold by Rocket. In addition, Rocket has granted the underwriters a 30-day option to purchase up to an additional 1,980,000 shares of its common stock offered in the public offering. The offering is expected to close on or about December 12, 2024, subject to customary closing conditions.

Morgan Stanley, Leerink Partners and Cantor are acting as joint book-running managers for the offering, and LifeSci Capital is acting as lead manager for the offering.

The shares are being offered by Rocket pursuant to an effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A final prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov.

When available, copies of the final prospectus supplement relating to the offering may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, by email at prospectus@morganstanley.com; Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525 ext. 6105 or by email at syndicate@leerink.com; or Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York, 10022, or by email at prospectus@cantor.com. You may also obtain a copy of this document free of charge by visiting the SEC’s website at http://www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these 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 the registration or qualification under the securities laws of any such state or jurisdiction.

About Rocket Pharmaceuticals, Inc.

Rocket Pharmaceuticals, Inc. (NASDAQ: RCKT) is a fully integrated, late-stage biotechnology company advancing a sustainable pipeline of investigational genetic therapies designed to correct the root cause of complex and rare disorders. Rocket’s innovative multi-platform approach allows us to design the optimal gene therapy for each indication, creating potentially transformative options that enable people living with devastating rare diseases to experience long and full lives.

Rocket’s lentiviral (LV) vector-based hematology portfolio consists of late-stage programs for Fanconi Anemia (FA), a difficult-to-treat genetic disease that leads to bone marrow failure (BMF) and potentially cancer, Leukocyte Adhesion Deficiency-I (LAD-I), a severe pediatric genetic disorder that causes recurrent and life-threatening infections which are frequently fatal, and Pyruvate Kinase Deficiency (PKD), a monogenic red blood cell disorder resulting in increased red cell destruction and mild to life-threatening anemia.

Rocket’s adeno-associated viral (AAV) vector-based cardiovascular portfolio includes a late-stage program for Danon disease, a devastating heart failure condition resulting in thickening of the heart, an early-stage program in clinical trials for PKP2-arrhythmogenic cardiomyopathy (ACM), a life-threatening heart failure disease causing ventricular arrhythmias and sudden cardiac death, and a pre-clinical program targeting BAG3-associated dilated cardiomyopathy (DCM), a heart failure condition that causes enlarged ventricles.

Rocket Cautionary Statement Regarding Forward-Looking Statements

Various statements in this release concerning the timing and completion of the public offering on the anticipated terms or at all may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, as amended, and other federal securities laws. All such forward-looking statements are based on management’s current expectations of future events and are subject to a number of substantial risks and uncertainties, many of which are outside Rocket’s control, that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include fluctuations in Rocket’s stock price, changes in market conditions and satisfaction of customary closing conditions related to the public offering, as well as those risks more fully discussed in the section entitled "Risk Factors" in the prospectus supplement and registration statement referenced above, Rocket’s Annual Report on Form 10-K for the year ended December 31, 2023, filed February 27, 2024 with the SEC and subsequent filings with the SEC including our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. There can be no assurance that Rocket will be able to complete the public offering on the anticipated terms. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and Rocket undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211153281/en/

Media & Investors

Meg Dodge

mdodge@rocketpharma.com

Media

Kevin Giordano

media@rocketpharma.com

Investors

Brooks Rahmer

investors@rocketpharma.com

Source: Rocket Pharmaceuticals, Inc.

FAQ

How much money will RCKT raise from its December 2024 public offering?

Rocket Pharmaceuticals expects to raise $165 million in gross proceeds from the public offering, before deducting underwriting discounts and commissions and offering expenses.

What is the price per share for RCKT's December 2024 public offering?

The public offering price is $12.50 per share of common stock.

How many shares is RCKT offering in its December 2024 public offering?

Rocket Pharmaceuticals is offering 13,200,000 shares of common stock, with an additional 30-day option for underwriters to purchase up to 1,980,000 more shares.

When will RCKT's December 2024 public offering close?

The offering is expected to close on or about December 12, 2024, subject to customary closing conditions.

Who are the underwriters for RCKT's December 2024 public offering?

Morgan Stanley, Leerink Partners, and Cantor are acting as joint book-running managers, with LifeSci Capital acting as lead manager for the offering.