Avidity Biosciences Announces Closing of Upsized Public Offering of Common Stock, Including Full Exercise of Underwriters' Option to Purchase Additional Shares

Rhea-AI Summary

Avidity Biosciences (Nasdaq: RNA) has successfully closed its upsized public offering of common stock, raising approximately $345.1 million in gross proceeds. The offering included 8,418,000 shares sold at $41.00 per share, with underwriters fully exercising their option to purchase additional shares. The company plans to use the net proceeds to fund its clinical programs, advance research and development of its AOC platform, and for working capital and general corporate purposes. The offering was managed by several prominent investment banks, including Leerink Partners, TD Cowen, Cantor, Barclays, and Wells Fargo Securities as joint bookrunning managers.

Positive

• Successful closing of upsized public offering, raising $345.1 million in gross proceeds
• Full exercise of underwriters' option to purchase additional shares, indicating strong demand
• Funds to be used for development of clinical programs and advancement of AOC platform research

Negative

• Potential dilution of existing shareholders due to the issuance of new shares

Insights

Financial Analyst

Avidity Biosciences' successful upsized public offering is a significant financial development. The company raised $345.1 million by selling 8,418,000 shares at $41.00 per share, including the full exercise of the underwriters' option. This substantial capital infusion strengthens Avidity's financial position, potentially accelerating their clinical programs and platform development.

The strong investor demand, evidenced by the upsized offering and full option exercise, suggests market confidence in Avidity's AOC™ technology and pipeline. However, investors should note the dilutive effect on existing shareholders. The company's ability to efficiently allocate these funds towards value-creating activities will be important for long-term success in the competitive RNA therapeutics space.

Biotech Industry Expert

This successful offering positions Avidity Biosciences favorably in the rapidly evolving RNA therapeutics landscape. The substantial funding boost will likely accelerate the development of their Antibody Oligonucleotide Conjugates (AOCs™) platform, a novel approach in RNA-targeted therapies.

The strong market reception indicates investor confidence in Avidity's technology, which could potentially overcome delivery challenges faced by traditional RNA therapeutics. However, the company still needs to demonstrate clinical efficacy and safety in ongoing trials. The additional capital provides a runway for multiple clinical readouts, potentially de-risking the company's pipeline and enhancing its competitive position in this promising therapeutic area.

SAN DIEGO, Aug. 19, 2024 /PRNewswire/ -- Avidity Biosciences, Inc. (Nasdaq: RNA), a biopharmaceutical company committed to delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs™), today announced that it has closed its previously announced underwritten public offering of 8,418,000 shares of its common stock, including 1,098,000 shares sold pursuant to the underwriters' full exercise of their option to purchase additional shares, at a price to the public of $41.00 per share. The gross proceeds to Avidity from the offering, before deducting the underwriting discounts and commissions and other offering expenses, were approximately $345.1 million. All of the shares sold in the offering were sold by Avidity.

Avidity intends to use the net proceeds from this offering, together with its existing cash, cash equivalents and marketable securities, to fund the development of its clinical programs, to advance research and development associated with its AOC platform and for working capital and general corporate purposes.

Leerink Partners, TD Cowen, Cantor, Barclays and Wells Fargo Securities acted as joint bookrunning managers for the offering. Raymond James, Chardan and Needham & Company acted as co-managers for the offering.

The securities described above were offered by Avidity pursuant to a shelf registration statement that became automatically effective upon filing with the Securities and Exchange Commission (SEC). A final prospectus supplement and the accompanying prospectus relating to this offering have been filed with the SEC. The offering was made only by means of a prospectus and prospectus supplement that form a part of the registration statement. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from: Leerink Partners LLC c/o 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, 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, Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by email at prospectus@cantor.com, Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at (888) 603-5847, or by email at Barclaysprospectus@broadridge.com, or Wells Fargo Securities, LLC, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, by telephone at (800) 645-3751 (option #5), or by email at WFScustomerservice@wellsfargo.com. Electronic copies of the final prospectus supplement and accompanying prospectus are also 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, 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 Avidity

Avidity Biosciences, Inc.'s mission is to profoundly improve people's lives by delivering a new class of RNA therapeutics - Antibody Oligonucleotide Conjugates (AOCs™). Avidity is revolutionizing the field of RNA with its proprietary AOCs, which are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies. Utilizing its proprietary AOC platform, Avidity demonstrated the first-ever successful targeted delivery of RNA into muscle and is leading the field with clinical development programs for three rare muscle diseases: myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD) and facioscapulohumeral muscular dystrophy (FSHD). Avidity is broadening the reach of AOCs with its advancing and expanding pipeline including programs in cardiology and immunology through internal discovery efforts and key partnerships. Avidity is headquartered in San Diego, CA.

Forward-Looking Statements

Avidity cautions readers that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding Avidity's anticipated use of proceeds from the public offering. The inclusion of forward-looking statements should not be regarded as a representation by Avidity that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties associated with market conditions, as well as risks and uncertainties inherent in Avidity's business described in prior press releases and in filings with the SEC, including under the heading "Risk Factors" in Avidity's most recent annual report on Form 10-K and any subsequent filings with the SEC. Avidity cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Avidity undertakes no obligation to update such statements to reflect events that occur or circumstances that arise after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Company Contact:

Mike MacLean
(619) 837-5014
investors@aviditybio.com

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SOURCE Avidity Biosciences, Inc.

FAQ

How much did Avidity Biosciences (RNA) raise in its recent public offering?

Avidity Biosciences (RNA) raised approximately $345.1 million in gross proceeds from its recent public offering of common stock.

What was the price per share for Avidity Biosciences' (RNA) public offering?

The public offering price for Avidity Biosciences' (RNA) common stock was $41.00 per share.

How many shares did Avidity Biosciences (RNA) sell in its public offering?

Avidity Biosciences (RNA) sold a total of 8,418,000 shares in its public offering, including the full exercise of the underwriters' option to purchase additional shares.

What will Avidity Biosciences (RNA) use the proceeds from the offering for?

Avidity Biosciences (RNA) intends to use the net proceeds to fund the development of its clinical programs, advance research and development of its AOC platform, and for working capital and general corporate purposes.