ADARx Pharmaceuticals Announces the Closing of Full Exercise of Underwriters’ Option to Purchase Additional Shares Granted in Its Initial Public Offering

Gross proceeds exclude underwriting discounts, commissions, placement agent fees and other offering and private placement expenses.

Rhea-AI Summary

ADARx Pharmaceuticals (ADRX) closed the sale of 3,937,500 additional IPO shares after underwriters fully exercised their option to purchase them. The shares were sold at $17.00 each, bringing the initial public offering to 30,187,500 shares and approximately $513.2 million in gross proceeds.

AbbVie also purchased 5,255,542 shares at $17.00 each in a concurrent private placement. Combined gross proceeds from the IPO and private placement were approximately $602.5 million. J.P. Morgan, Morgan Stanley, TD Cowen and UBS Investment Bank served as lead book-running managers; LifeSci Capital served as a book-running manager.

1 point · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 3 points

How the balance works

Positive

• Major pointIPO and concurrent AbbVie private placement raised approximately $602.5 million in aggregate gross proceeds. 28% of market cap

Negative

• Major pointIPO issuance of 30,187,500 shares at $17.00 each, including the fully exercised option, dilutes existing holders.
• Minor pointConcurrent AbbVie placement issued 5,255,542 shares at $17.00 each, adding dilution.
• Minor pointUnderwriting discounts, commissions, placement agent fees and other expenses reduce proceeds retained by ADARx.

News Explained

The completed issuance of 3,937,500 additional common shares increases the share count and, absent offsetting changes, reduces existing holders’ percentage ownership.

Key Figures

Additional shares: 3,937,500 shares Public offering price: $17.00 per share Total IPO shares sold: 30,187,500 shares +3 more

Additional shares

3,937,500 shares

Full exercise of the underwriters’ option

Public offering price

$17.00 per share

Additional IPO shares

Total IPO shares sold

30,187,500 shares

After the additional-share issuance closed

IPO gross proceeds

Approximately $513.2 million

Before underwriting discounts, commissions, and offering expenses

AbbVie private placement

5,255,542 shares at $17.00 per share

Concurrent with the IPO

Combined gross proceeds

Approximately $602.5 million

IPO and concurrent private placement, before specified fees and expenses

Key Terms

private placement, underwriting discounts and commissions

2 terms

private placement financial

"in a concurrent private placement exempt from the registration requirements"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

underwriting discounts and commissions financial

"before deducting underwriting discounts and commissions"

Underwriting discounts and commissions are fees paid to financial institutions that help sell new securities to investors. They act like a commission for their role in connecting companies with buyers, often reducing the amount of money the issuing company raises. For investors, understanding these costs helps gauge how much of their investment is going toward the actual securities versus fees paid to middlemen.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN DIEGO, Oct. 01, 2026 (GLOBE NEWSWIRE) -- ADARx Pharmaceuticals, Inc. (ADARx) (Nasdaq: ADRX), a late-stage clinical biotechnology company developing next-generation siRNA therapeutics, announced today that, in connection with its upsized initial public offering of its common stock, the underwriters have fully exercised their option to purchase an additional 3,937,500 shares of ADARx’s common stock at a price to the public of $17.00 per share. The issuance of the additional shares closed on October 1, 2026, bringing the total number of shares sold in the initial public offering to 30,187,500 shares and the aggregate gross proceeds to ADARx from the offering, before deducting underwriting discounts and commissions and offering expenses payable by ADARx, to approximately $513.2 million.

J.P. Morgan, Morgan Stanley, TD Cowen and UBS Investment Bank acted as lead book-running managers for the offering. LifeSci Capital acted as a book-running manager for the offering.

Registration statements relating to these securities have been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on September 24, 2026. Copies of the registration statements can be accessed through the SEC’s website at www.sec.gov. This offering was made only by means of a prospectus forming part of the registration statements relating to these securities. Copies of the final prospectus relating to the initial public offering may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at 1-866-718-1649, or by email at prospectus@morganstanley.com; TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at TDManualrequest@broadridge.com; or UBS Securities LLC, Attention: Equity Syndicate, 11 Madison Avenue, New York, NY 10010 or by email at ol-prospectus-request@ubs.com.

Including the purchase by AbbVie of 5,255,542 shares of ADARx’s common stock at a price of $17.00 per share in a concurrent private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act), the aggregate gross proceeds to ADARx from the initial public offering and the concurrent private placement, before deducting underwriting discounts and commissions, placement agent fees and other offering and private placement expenses payable by ADARx, were approximately $602.5 million.

This press release does 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 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 jurisdiction.

About ADARx Pharmaceuticals

ADARx Pharmaceuticals, Inc. is a late-stage biotechnology company dedicated to transforming cutting-edge science into next-generation siRNA therapeutics. We have developed technology designed to control the expression of specific disease drivers with highly selective RNA targeted therapies with the goal of delivering life-changing treatments for patients with unmet medical needs. ADARx is focused on advancing and expanding a deep pipeline of highly potent, durable and selective RNA-targeted therapeutic candidates, developing product candidates for the treatment of complement-mediated, genetic, cardiovascular, thrombosis, central nervous system and metabolic (obesity) diseases. In addition to our wholly-owned programs, we have entered into a collaboration and license option agreement with AbbVie to develop small interfering RNA (siRNA) therapeutics across multiple disease areas, including neuroscience, immunology and oncology.

Contacts

Investors: ir@adarx.com
Media: teri@redhousecomms.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How many additional shares did ADARx sell through the underwriters’ IPO option?

ADARx sold 3,937,500 additional common shares at $17.00 each after the underwriters fully exercised their option. The additional issuance closed on October 1, 2026, bringing total IPO shares sold to 30,187,500.

How much did ADARx raise from its IPO and AbbVie private placement?

ADARx raised approximately $602.5 million in aggregate gross proceeds from the IPO and concurrent AbbVie private placement. The IPO generated approximately $513.2 million in gross proceeds. The combined figure is before underwriting discounts and commissions, placement agent fees, and other offering and private placement expenses.