Avidity Biosciences, Inc. Announces Proposed Public Offering of Common Stock
Avidity Biosciences announced a proposed public offering to sell $300 million of common stock, with an additional $45 million available via a 30-day underwriters' option. The proceeds will fund clinical program development, AOC platform R&D, working capital, and general corporate purposes. Completion of the offering is subject to market conditions, and the terms are uncertain. Joint bookrunning managers include TD Cowen, Leerink Partners, Cantor, Barclays, and Wells Fargo Securities. The offering is pursuant to an automatically effective shelf registration statement filed with the SEC.
- Proposed offering to raise $300 million in capital.
- Additional $45 million available through underwriters' option.
- Funds to support clinical programs and R&D for AOC platform.
- Use of proceeds includes working capital and general corporate purposes.
- Strong lineup of joint bookrunning managers (TD Cowen, Leerink Partners, Cantor, Barclays, Wells Fargo Securities).
- Automatically effective shelf registration statement ensures regulatory compliance.
- No assurance on the completion or terms of the offering.
- Potential dilution of existing shareholders' equity.
- Market conditions could negatively impact the offering.
- Uncertainty around the actual size and timing of the offering.
Insights
The proposed public offering of
On the positive side, the successful capital raise could bolster the company's financial health, providing it with the liquidity needed to navigate the costly and lengthy drug development process. Investors should note that the inclusion of reputable institutions like TD Cowen, Leerink Partners, Cantor, Barclays and Wells Fargo as joint bookrunning managers may instill confidence and help in the smooth execution of the offering.
From a broader market perspective, the increased capital could enable significant advancements in RNA therapeutics, an area with growing interest and potential for high impact in the biopharmaceutical industry. Investors may want to watch how efficiently Avidity allocates these resources to accelerate its clinical trials and R&D programs, which could drive long-term value if met with clinical success and potential regulatory approval.
Avidity Biosciences' focus on Antibody Oligonucleotide Conjugates (AOCs™) is quite unique and innovative within the biotech space. These AOCs aim to target specific tissues with high precision, potentially addressing unmet medical needs. The announcement of this public offering suggests confidence in their technology and ongoing projects. The funds raised will be important to support these endeavours, as the development of novel therapeutics typically incurs high costs due to rigorous R&D and lengthy clinical trial phases.
Investors should understand that while this financial move could be seen as a positive step towards advancing Avidity’s pipeline, the inherent risks associated with biopharmaceutical development remain. Regulatory approval processes can be uncertain and time-consuming and there's no guarantee of success despite considerable investment. The ability to translate scientific breakthroughs into viable, marketable therapies will be key. Thus, while the offering can boost the company's capabilities, outcomes are invariably tied to clinical and regulatory milestones.
Moreover, investors should be aware of the competitive landscape in RNA therapeutics. The field is rapidly evolving with many players and staying ahead requires continuous innovation and effective use of funds. Avidity's success in differentiating its AOCs from other RNA-based therapies will greatly influence its market position and potential return on investment.
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 will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may be obtained from TD Securities (
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
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 completion, timing and size of the proposed public offering, the grant of the option to the underwriters and the anticipated use of proceeds from the 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 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.
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