Spyre Therapeutics Announces Proposed Public Offering of its Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Spyre Therapeutics (NASDAQ: SYRE), a clinical-stage biotech company focused on inflammatory bowel disease treatment, has announced a proposed public offering of up to $200 million in common stock and pre-funded warrants. The underwriters will have a 30-day option to purchase an additional $30 million of shares. The offering will be managed by Jefferies, Goldman Sachs, Evercore Group, and Guggenheim Securities as joint book-running managers, with LifeSci Capital as lead manager. The offering is subject to market conditions and will be made through a prospectus supplement and accompanying prospectus filed with the SEC.

Positive

• Potential to raise up to $230 million in capital including underwriters' option
• Strong lineup of reputable investment banks managing the offering

Negative

• Potential dilution for existing shareholders
• Uncertainty regarding final offering terms and completion

Insights

Financial Analyst

This $200 million public offering with an additional $30 million option represents a significant capital raise for Spyre Therapeutics. The offering structure, including pre-funded warrants, provides flexibility to accommodate different investor preferences while managing dilution. The involvement of major underwriters like Jefferies, Goldman Sachs, Evercore and Guggenheim adds credibility to the offering.

With a current market cap of $1.59 billion, this offering could dilute existing shareholders by approximately 12.6% (excluding the overallotment option). However, the capital injection would strengthen Spyre's balance sheet, potentially funding their IBD drug development pipeline through critical clinical milestones. The timing aligns with the recently effective S-3 registration, suggesting strategic planning in their capital management.

WALTHAM, Mass., Nov. 18, 2024 /PRNewswire/ -- Spyre Therapeutics, Inc. ("Spyre" or the "Company") (NASDAQ: SYRE), a clinical-stage biotechnology company utilizing best-in-class antibody engineering, rational therapeutic combinations, and precision medicine approaches to target improved efficacy and convenience in the treatment of inflammatory bowel disease ("IBD"), today announced that it has commenced an underwritten public offering of up to $200.0 million of shares of its common stock or, in lieu of issuing common stock to certain investors, pre-funded warrants to purchase shares of its common stock. In addition, the Company is expected to grant the underwriters of the offering an option for a period of 30 days to purchase up to an additional $30.0 million of shares of common stock at the public offering price, less the underwriting discount. All of the shares of common stock and pre-funded warrants in the offering will be sold by Spyre. 

The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Jefferies LLC, Goldman Sachs & Co. LLC, Evercore Group L.L.C., and Guggenheim Securities, LLC are acting as the joint book-running managers for the proposed offering. LifeSci Capital LLC is acting as lead manager for the proposed offering.

A registration statement on Form S-3 (File No. 333-281975) relating to these securities has been filed with the Securities and Exchange Commission (the "SEC") and became effective on September 18, 2024. This offering is being made solely by means of a prospectus supplement and accompanying prospectus. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the 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 related to the offering may be obtained from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388 or by email at Prospectus_Department@Jefferies.com; Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by email at Prospectus-ny@ny.email.gs.com; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com; and Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, or by telephone at (212) 518-9544 or by email at GSEquityProspectusDelivery@guggenheimpartners.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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 state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Spyre Therapeutics

Spyre Therapeutics is a biotechnology company that aims to create the next-generation of inflammatory bowel disease (IBD) products by combining best-in-class antibody engineering, rational therapeutic combinations, and precision medicine approaches. Spyre's pipeline includes investigational extended half-life antibodies targeting α4β7, TL1A, and IL-23.

Safe Harbor / Forward Looking Statements

This press release contains "forward-looking" statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical fact are forward-looking statements. These forward-looking statements include statements regarding Spyre's expectations regarding the proposed offering, including the timing, size, structure and completion of the proposed offering on the anticipated terms or at all and the satisfaction of customary closing conditions related to the offering. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "predict," "target," "intend," "could," "would," "should," "project," "plan," "expect," the negatives of these terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including the Company's anticipated completion of the offering, market conditions and satisfaction of customary closing conditions related to the offering, the expected or potential impact of macroeconomic conditions, including inflationary pressures, rising interest rates, general economic slowdown or a recession, changes in monetary policy, volatile market conditions, financial institution instability, as well as geopolitical instability, including the ongoing military conflict in Ukraine, conflict in Israel and surrounding areas, and geopolitical tensions in China on the Company's operations, the potential impacts of the BIOSECURE Act bill if passed into law and those risks described in the Company's most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, as well as in other filings and reports that the Company makes from time to time with the SEC. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for the Company's management to predict all risks, nor can the Company assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements it may make. In light of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. The Company undertakes no obligation to update publicly any forward-looking statement for any reason after the date of this press release to conform these statements to actual results, to reflect changes in the Company's expectations, or otherwise, except as required by law.

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SOURCE Spyre Therapeutics, Inc.

FAQ

What is the size of Spyre Therapeutics' (SYRE) proposed public offering in November 2024?

Spyre Therapeutics announced a proposed public offering of up to $200 million, with an additional $30 million option for underwriters, totaling a potential of $230 million.

Who are the underwriters for Spyre Therapeutics' (SYRE) 2024 public offering?

The joint book-running managers are Jefferies, Goldman Sachs, Evercore Group, and Guggenheim Securities, with LifeSci Capital acting as lead manager.

What types of securities is Spyre Therapeutics (SYRE) offering in their 2024 public offering?

Spyre Therapeutics is offering shares of common stock and pre-funded warrants to purchase shares of common stock.