Vera Therapeutics Announces Proposed Public Offering of Class A Common Stock

Rhea-AI Summary

Vera Therapeutics (VERA), a late clinical-stage biotechnology company, has announced plans for a $300 million public offering of Class A common stock. The company will grant underwriters a 30-day option to purchase up to an additional 15% of shares. J.P. Morgan, Goldman Sachs & Co. , Evercore ISI and Cantor are acting as joint book-running managers. The offering will be made through an automatic shelf registration statement on Form S-3 filed with the SEC on October 28, 2024.

Positive

• Significant capital raise of $300 million to strengthen financial position
• Support from major financial institutions as underwriters

Negative

• Potential dilution of existing shareholders' value
• Additional 15% share option could further increase dilution

Insights

Financial Analyst

This $300 million public offering marks a significant capital raising effort for Vera Therapeutics, indicating a substantial expansion of their financial resources. The involvement of major underwriters like J.P. Morgan, Goldman Sachs, Evercore ISI and Cantor adds credibility to the offering. The additional 15% option for underwriters could potentially increase the total raise to $345 million.

The automatic shelf registration suggests Vera meets the well-known seasoned issuer (WKSI) criteria, demonstrating market capitalization above $700 million. However, investors should note potential dilution of existing shareholders' value. The timing and size of this offering may indicate upcoming catalysts or increased cash needs for late-stage clinical programs.

BRISBANE, Calif., Oct. 28, 2024 (GLOBE NEWSWIRE) -- Vera Therapeutics, Inc. (“Vera”), a late clinical-stage biotechnology company focused on developing and commercializing transformative treatments for patients with serious immunologic diseases, today announced its plans to commence a public offering, subject to market and other conditions, to issue and sell $300.0 million of shares of its Class A common stock. All of the shares are being offered by Vera.

In connection with the proposed offering, Vera expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of Class A common stock sold in the public offering. There can be no assurance as to whether or when the proposed offering may be completed or as to the actual size or terms of the proposed offering.

J.P. Morgan, Goldman Sachs & Co. LLC, Evercore ISI and Cantor are acting as joint book-running managers for the proposed offering.

The proposed offering is being made pursuant to an automatic shelf registration statement on Form S-3, including a base prospectus, that was filed with the Securities and Exchange Commission (the “SEC”) on October 28, 2024 and became effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to the proposed offering will be filed with the SEC and will be available for free on the SEC’s website located at http://www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the proposed offering may be obtained, when available from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, 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, NY 10055, or by telephone at 888-474-0200, or by email at ecm.prospectus@evercore.com; or Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th St., 6^th Floor, New York, NY 10022, or by email at prospectus@cantor.com.

This press release shall not constitute an offer to sell or a 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 Vera

Vera is a late clinical-stage biotechnology company focused on developing treatments for serious immunological diseases. Vera’s mission is to advance treatments that target the source of immunological diseases in order to change the standard of care for patients. Vera’s lead product candidate is atacicept, a fusion protein self-administered as a subcutaneous injection once weekly that blocks both B-cell activating factor (BAFF) and A proliferation-inducing ligand (APRIL), which stimulate B cells and plasma cells to produce autoantibodies contributing to certain autoimmune diseases, including IgAN, also known as Berger’s disease, and lupus nephritis. In addition, Vera is evaluating additional diseases where the reduction of autoantibodies by atacicept may prove medically useful. Vera is also developing MAU868, a monoclonal antibody designed to neutralize infection with BK virus (BKV), a polyomavirus that can have devastating consequences in certain settings such as kidney transplant. Vera retains all global developmental and commercial rights to atacicept and MAU868.

Forward-looking Statements

Statements contained in this press release regarding Vera’s expectations regarding the offering are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon Vera’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, market conditions and satisfaction of customary closing conditions related to the proposed public offering. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Vera undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Contacts
Investor Contact:
Joyce Allaire
LifeSci Advisors
212-915-2569
jallaire@lifesciadvisors.com

Media Contact:
Madelin Hawtin
LifeSci Communications
MHawtin@lifescicomms.com

FAQ

How much is Vera Therapeutics (VERA) planning to raise in its public offering?

Vera Therapeutics is planning to raise $300 million through a public offering of Class A common stock.

Who are the underwriters for VERA's October 2024 public offering?

J.P. Morgan, Goldman Sachs & Co. , Evercore ISI, and Cantor are acting as joint book-running managers for the offering.

What is the additional share purchase option in VERA's 2024 offering?

The underwriters will have a 30-day option to purchase up to an additional 15% of the shares sold in the public offering.