Avidity Biosciences, Inc. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Avidity Biosciences (Nasdaq: RNA) announced the pricing of a public offering of 10,550,000 shares of its common stock at $38.00 per share, expected to raise $400.9 million in gross proceeds. The offering is set to close around June 17, 2024, pending customary conditions. Avidity has also provided underwriters a 30-day option to purchase up to an additional 1,582,500 shares. Proceeds will support the development of clinical programs, research on its AOC platform, and general corporate purposes. TD Cowen, Leerink Partners, Cantor, Barclays, and Wells Fargo are the joint bookrunning managers.

Positive

• Avidity aims to raise $400.9 million from the public offering.
• The offering includes a 30-day option for underwriters to buy up to an additional 1,582,500 shares.
• Funds will support clinical programs and AOC platform research.
• All shares in the offering are sold by Avidity, indicating direct capital infusion.
• Multiple reputable financial institutions are involved in managing the offering.

Negative

• Potential shareholder dilution due to the issuance of 10,550,000 new shares.
• Additional shares (up to 1,582,500) may further dilute existing shareholders' stakes.
• The offering's success is contingent on the closing conditions being met.
• Market reaction to the public offering could negatively impact the stock price in the short term.

Insights

Financial Analyst

The announcement of Avidity Biosciences' public offering of common stock at $38.00 per share signifies a strategic move to raise substantial capital, totaling $400.9 million before deducting underwriting discounts and commissions. This influx of funds is poised to bolster the company's financial standing, particularly vital for advancing their clinical programs and AOC platform. These funds will likely support ongoing research, potentially accelerating the development of their RNA therapeutics pipeline. However, investors should note that while such offerings can dilute existing shares, the long-term benefits of expanded funding for R&D and business operations can outweigh this drawback. It's essential to observe the market's reaction upon the offering's closure on June 17, 2024 and monitor how efficiently the company utilizes the new funds.

Market Research Analyst

This public offering could significantly impact Avidity Biosciences' market position. By securing $400.9 million, the company can enhance its competitive edge in the biopharmaceutical sector, notorious for its high R&D costs and lengthy development timelines. The involvement of prominent financial institutions like TD Cowen and Wells Fargo Securities as joint bookrunning managers underscores investor confidence in Avidity's prospects. Retail investors should consider the strategic timing of this offering and how effectively the raised capital will be deployed in achieving milestones that could drive shareholder value. Observing the broader market’s response and analyst updates post-offering can provide further insights into Avidity's trajectory.

Biotech Industry Specialist

From a biotech perspective, raising $400.9 million through a public offering is a pivotal step for Avidity Biosciences. The focus on funding clinical programs and advancing the AOC platform suggests a commitment to innovation in RNA therapeutics, a field with promising potential but also significant scientific and regulatory hurdles. The additional funding could expedite the path to clinical trials, potentially bringing transformative therapies to market faster. However, biotech investments carry inherent risks, including trial failures or regulatory setbacks. While the offering strengthens Avidity's financial base, investors should remain cognizant of the sector's volatility and the need for sustained progress in clinical outcomes to realize long-term gains.

SAN DIEGO, June 13, 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 an underwritten public offering of 10,550,000 shares of its common stock at a price to the public of $38.00 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 $400.9 million. The offering is expected to close on or about June 17, 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 1,582,500 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.

TD Cowen, Leerink Partners, Cantor, Barclays and Wells Fargo Securities are acting as joint bookrunning 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: 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 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 Securities and Exchange Commission (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 is the stock symbol for Avidity Biosciences?

The stock symbol for Avidity Biosciences is RNA.

What is the pricing of Avidity Biosciences' public offering?

The public offering is priced at $38.00 per share.

How much will Avidity Biosciences raise from the public offering?

Avidity Biosciences expects to raise $400.9 million in gross proceeds from the offering.

When is the closing date for Avidity Biosciences' public offering?

The offering is expected to close on or about June 17, 2024, subject to customary conditions.

What will the funds from the public offering be used for?

The funds will be used to support clinical programs, advance AOC platform research, and for general corporate purposes.

What is the additional option granted to the underwriters in Avidity's public offering?

The underwriters have a 30-day option to purchase up to an additional 1,582,500 shares.