Viridian Therapeutics Announces Pricing of Public Offering of Shares of Common Stock
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Insights
Viridian Therapeutics' announcement of a public offering at $21.00 per share, aiming to raise $150 million, is a significant liquidity event that warrants close examination. This capital infusion is poised to bolster the company's balance sheet, providing the financial flexibility necessary for advancing its research and development pipeline. The offering's size relative to Viridian's market capitalization suggests a strategic move to capitalize on the current market conditions and the company's valuation.
Investors should note the dilutive effect of this offering, as it increases the number of shares outstanding, potentially impacting earnings per share. However, the capital raise can also be seen as an investment in the company's future growth, especially if the funds are allocated effectively towards accelerating drug development programs with high market potential. The underwriters' option to purchase additional shares can also serve as an indicator of the offering's reception and confidence in the company's prospects.
In the highly competitive biotech sector, capital is king. Viridian's strategic decision to raise funds through a public offering is a common approach for biotech firms seeking to finance costly clinical trials or expand their research capabilities. The pricing of the offering at $21.00 per share provides insights into the perceived value of Viridian's pipeline and its potential to address unmet medical needs in the serious and rare diseases space.
For stakeholders, the long-term value of this capital raise hinges on the company's ability to translate financial resources into clinical success. The progress of Viridian's pipeline post-offering will be critical, as successful drug development can lead to substantial returns on investment, whereas setbacks could diminish the value of the newly acquired funds.
It's important to contextualize Viridian's public offering within the broader market trends. Biotech firms often face volatile market conditions and the timing of such an offering can be pivotal. Analyzing the market sentiment towards biotech investments and the performance of similar companies can provide additional layers of understanding regarding the potential impact of this offering on Viridian's stock performance.
Moreover, the reaction of institutional and retail investors to the offering will be telling. A successful closing of the offering could signal market confidence in Viridian's strategic direction and growth potential. Conversely, any difficulties in closing the offering or a lukewarm reception could suggest market reservations about the company's valuation or its prospects within the biotech industry.
All of the shares to be sold in the underwritten public offering are being offered by Viridian. The offering is expected to close on or about January 22, 2024, subject to customary closing conditions.
Viridian intends to use the proceeds from the proposed underwritten public offering of its shares of common stock, together with its cash, cash equivalents and short-term investments, to further its clinical development programs, as well as for working capital and general corporate purposes.
Jefferies and Leerink Partners are acting as joint lead book-running managers for the offering.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission (SEC) and became effective on September 9, 2022. A final prospectus supplement relating to and describing the terms of the offering will be filed with the SEC. The securities described above have not been qualified under any state blue sky laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. The offering can be made only by means of a prospectus, copies of which may be obtained at the SEC’s website at www.sec.gov, or by request to Jefferies LLC (Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue,
About Viridian Therapeutics, Inc.
Viridian is a biopharmaceutical company focused on engineering and developing potential best-in-class medicines for patients with serious and rare diseases. Viridian’s expertise in antibody discovery and engineering enables it to develop differentiated therapeutic candidates for previously validated drug targets in commercially established disease areas.
Viridian is advancing multiple candidates in the clinic for the treatment of patients with thyroid eye disease (TED). The company is conducting two global Phase 3 clinical trials (THRIVE and THRIVE-2) to evaluate the safety and efficacy of VRDN-001 in patients with active and chronic TED. Viridian’s goal is to advance VRDN-001 as a best-in-class IV therapy followed by VRDN-003 as a first- and best-in-class subcutaneous therapy for the treatment of TED. In addition to its TED portfolio, Viridian is advancing a novel portfolio of neonatal Fc receptor (FcRn) inhibitors, VRDN-006 and VRDN-008, which has the potential to be developed in multiple autoimmune diseases.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of words such as, but not limited to, “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or other similar terms or expressions that concern the company’s expectations, plans and intentions. Forward-looking statements include, without limitation, statements regarding the underwritten public offering and the company’s expectations with respect to the use of the net proceeds from the underwritten public offering. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on the company’s current beliefs, expectations and assumptions. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements. Such forward-looking statements are subject to a number of material risks and uncertainties including but not limited to: the satisfaction of customary closing conditions related to the underwritten public offering; and other risks and uncertainties identified in the company’s filings with the SEC, including those risks set forth under the caption “Risk Factors” in the company’s Quarterly Report on Form 10-Q filed with the SEC on November 13, 2023 and other subsequent disclosure documents filed with the SEC. Any forward-looking statement speaks only as of the date on which it was made. Neither the company, nor its affiliates, advisors or representatives, undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing the company’s views as of any date subsequent to the date hereof.
Source: Viridian Therapeutics, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240117318433/en/
Investor & Media Contact:
Louisa Stone, 617-272-4604
Manager, Investor Relations
IR@viridiantherapeutics.com
Source: Viridian Therapeutics, Inc.
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