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

Rhea-AI Summary

Avidity Biosciences has concluded an upsized public offering of 12,132,500 shares of common stock, priced at $38.00 per share, including 1,582,500 shares sold under the underwriters' option. The gross proceeds from the offering amount to $461 million before deductions. The funds will support the development of Avidity's clinical programs, research and development of its AOC platform, and general corporate purposes. Joint bookrunning managers for the offering included TD Cowen, Leerink Partners, Cantor, Barclays, and Wells Fargo Securities. The offering was made under an automatically effective shelf registration filed with the SEC.

Positive

• Completion of an upsized public offering raising $461 million.
• Full exercise of underwriters' option to purchase additional shares.
• Funds to support clinical programs and AOC platform R&D.
• Joint bookrunning managers include esteemed firms like TD Cowen and Barclays.

Negative

• Potential shareholder dilution due to the sale of additional shares.
• Offering expenses and underwriting discounts not specified, reducing net proceeds.

Insights

Financial Analyst

Avidity Biosciences' recent public offering of 12,132,500 shares of common stock at $38.00 per share has raised approximately $461.0 million before expenses. This move significantly strengthens the company’s balance sheet, enhancing its ability to fund its clinical programs and advance its AOC platform.

Public offerings can influence stock prices in varied ways. While the immediate injection of funds is a positive sign, increasing the share count can dilute existing shareholders' equity. However, the fact that the offering was upsized and the underwriters exercised their option to purchase additional shares fully reflects strong demand and investor confidence in Avidity’s growth potential.

Using the funds for clinical programs and R&D can accelerate the development pipeline, potentially leading to future breakthroughs. This strategic allocation aligns with industry norms, where biopharma companies utilize raised capital for advancing therapeutic platforms and clinical studies.

From a retail investor perspective, the key is to monitor how effectively Avidity uses these funds and the subsequent impact on its clinical milestones and financial performance. The market will also be watching for any resulting dilution effects on share value.

Market Research Analyst

The successful closing of this upsized public offering indicates a strong market interest in Avidity Biosciences' innovative approach to RNA therapeutics. The company's AOC platform is pioneering, bridging antibodies with oligonucleotide conjugates, potentially offering novel treatments for various conditions.

The $461.0 million raised will enhance Avidity's strategic goals, especially in a competitive biotech landscape where funding is important for maintaining a leading edge. Investors should note the strategic partnerships with prominent financial institutions like TD Cowen, Leerink Partners, Cantor, Barclays and Wells Fargo, which further affirm market confidence.

Key indicators to watch will be progress reports on clinical trials and any new partnerships or collaborations that could arise. Avidity’s ability to meet its clinical milestones will be a critical factor for long-term investor confidence.

SAN DIEGO, June 17, 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 12,132,500 shares of its common stock, including 1,582,500 shares sold pursuant to the underwriters' full exercise of their option to purchase additional shares, at a price to the public of $38.00 per share. The gross proceeds to Avidity from the offering, before deducting the underwriting discounts and commissions and other offering expenses, were approximately $461.0 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.

TD Cowen, Leerink Partners, Cantor, Barclays and Wells Fargo Securities acted as joint bookrunning 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: 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, 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, 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:

Geoffrey Grande, CFA
(619) 837-5014
investors@aviditybio.com

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SOURCE Avidity Biosciences, Inc.

FAQ

What was the gross proceeds from Avidity Biosciences' public offering?

The gross proceeds were approximately $461 million.

How many shares were included in Avidity Biosciences' upsized offering?

12,132,500 shares were included in the offering.

What was the price per share in Avidity Biosciences' public offering?

The price per share was $38.00.

What will Avidity Biosciences use the proceeds from the offering for?

The proceeds will be used to fund clinical programs, AOC platform R&D, and general corporate purposes.

Which firms acted as joint bookrunning managers for Avidity Biosciences' offering?

Joint bookrunning managers were TD Cowen, Leerink Partners, Cantor, Barclays, and Wells Fargo Securities.