Avidity Biosciences Announces Pricing of Upsized Public Offering of Common Stock

Rhea-AI Summary

Avidity Biosciences (Nasdaq: RNA) has announced the pricing of its upsized public offering of 7,320,000 shares of common stock at $41.00 per share. The company expects to raise approximately $300.1 million in gross proceeds. The offering is set to close around August 16, 2024, with underwriters having a 30-day option to purchase up to an additional 1,098,000 shares. Avidity 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 is being managed by several prominent investment banks, including Leerink Partners, TD Cowen, Cantor, Barclays, and Wells Fargo Securities.

Positive

• Successful upsizing of public offering, indicating strong investor interest
• Expected gross proceeds of approximately $300.1 million
• Funds to be used for clinical program development and AOC platform advancement
• Support from major investment banks as joint bookrunning managers

Negative

• Potential dilution of existing shareholders' ownership
• Increased share count may put downward pressure on stock price in the short term

Insights

Financial Analyst

Avidity Biosciences' upsized public offering of 7,320,000 shares at $41.00 per share is a significant capital raise, potentially bringing in $300.1 million in gross proceeds. This substantial influx of capital strengthens the company's financial position, providing ample resources for advancing its clinical programs and AOC platform research. The 30% overallotment option could further boost proceeds by up to $45 million.

The pricing at $41.00 per share suggests strong investor confidence in Avidity's potential. However, this offering will dilute existing shareholders' stakes. The market's reaction to this dilution versus the improved cash position will be important to watch in the short term. Long-term investors should focus on how effectively the company deploys this capital to accelerate its pipeline development and potentially reach key milestones faster.

Biotech Industry Expert

This substantial capital raise positions Avidity Biosciences favorably in the competitive RNA therapeutics landscape. The company's focus on Antibody Oligonucleotide Conjugates (AOCs™) represents a novel approach in this field. With this financial boost, Avidity can potentially accelerate the development of its clinical programs, which is important in the fast-paced biotech sector.

The involvement of multiple prominent underwriters, including Leerink Partners and TD Cowen, lends credibility to the offering and suggests strong institutional interest. This could translate to increased visibility and potential partnerships in the future. Investors should monitor upcoming clinical trial results and regulatory milestones, as these will be key drivers of the company's valuation and long-term success in bringing its innovative RNA therapeutics to market.

SAN DIEGO, Aug. 14, 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 the pricing of its upsized underwritten public offering of 7,320,000 shares of its common stock at a price to the public of $41.00 per share. All of the shares to be sold in the offering are to be sold by Avidity. The gross proceeds to Avidity from the offering, before deducting the underwriting discounts and commissions and other offering expenses, are expected to be approximately $300.1 million. The offering is expected to close on or about August 16, 2024, subject to the satisfaction of customary closing conditions. In addition, Avidity has granted the underwriters a 30-day option to purchase up to an additional 1,098,000 shares of common stock.

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 are acting as joint bookrunning managers for the offering. Raymond James, Chardan and Needham & Company are acting as co-managers for the offering.

The securities described above are being offered by Avidity pursuant to a shelf registration statement that became automatically effective upon filing with the Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus relating to this offering were filed with the SEC and a final prospectus supplement relating to the offering will be filed with the SEC. The offering may be made only by means of a prospectus supplement and accompanying prospectus. When available, 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, 40^th 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 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, 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 expectations of the market conditions and the satisfaction of customary closing conditions related to the public offering, the expected closing of the offering and the anticipated use of proceeds therefrom. 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 and the satisfaction of customary closing conditions related to the proposed public offering, 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 many shares is Avidity Biosciences (RNA) offering in its public offering?

Avidity Biosciences (RNA) is offering 7,320,000 shares of common stock in its upsized public offering, with an additional 30-day option for underwriters to purchase up to 1,098,000 more shares.

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

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

How much does Avidity Biosciences (RNA) expect to raise from the public offering?

Avidity Biosciences (RNA) expects to raise approximately $300.1 million in gross proceeds from the public offering.

When is the expected closing date for Avidity Biosciences' (RNA) public offering?

The public offering for Avidity Biosciences (RNA) is expected to close on or about August 16, 2024, subject to customary closing conditions.

How does Avidity Biosciences (RNA) plan to use the proceeds from the offering?

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.