Astria Therapeutics Announces Pricing of $125 Million Underwritten Offering

Rhea-AI Summary

Astria Therapeutics, Inc. (ATXS) has announced the pricing of an underwritten offering of 10,340,000 shares of its common stock at a price of $12.09 per share, with expected gross proceeds of approximately $125 million. The offering is expected to close soon, and all securities are being offered by Astria.

Financial Analyst

The announcement by Astria Therapeutics regarding the pricing of its underwritten offering of over 10 million shares at $12.09 each is a significant financial event for the company. The expected gross proceeds of approximately $125 million represent a substantial influx of capital. This capital can be pivotal for funding ongoing research and development projects, particularly in a sector like biopharmaceuticals where the costs of bringing a drug to market can be exceedingly high.

Investors and stakeholders should note the dilutive effect of such an offering on current shareholders. While the infusion of funds is necessary for growth, it does reduce the value of existing shares. However, if the funds are utilized effectively to advance the company's pipeline, especially in the high-stakes field of allergic and immunological diseases, the long-term payoff could outweigh the immediate dilution.

It is also worth considering the market's reception to the offering price. The set price per share gives an indication of investor appetite and confidence in the company's future prospects. A successful closing of the offering will not only provide the company with needed capital but may also serve as a vote of confidence from the market, potentially impacting the stock's performance positively.

Biopharmaceutical Industry Expert

From an industry perspective, the capital raised by Astria Therapeutics is indicative of the biopharmaceutical industry's continuous need for substantial investment in R&D. The development of treatments for allergic and immunological diseases is a complex and competitive area, requiring significant investment in clinical trials and regulatory processes. The successful funding indicates that Astria has convinced investors of the potential of their product pipeline.

For industry observers, the allocation of these funds will be closely monitored. Astria's strategy in deploying this capital towards its research and development programs will be critical. It will be interesting to see if they prioritize certain projects or expand into new areas of research. Additionally, the success rates of clinical trials in this sector are notoriously low, so the risk profile of the investment is high, but so is the potential reward, given the demand for new and effective therapies in the allergic and immunological space.

Market Research Analyst

Understanding the broader market implications of Astria Therapeutics' stock offering requires analyzing current market trends in the biopharmaceutical sector. Investors are showing interest in companies that are innovating in the treatment of complex diseases, as these can lead to blockbuster drugs. However, market sentiment can be fickle and investor enthusiasm can wane if development timelines are extended or if clinical trial results are not favorable.

Additionally, the pricing of the offering at $12.09 per share can be juxtaposed with the company's historical stock performance and the industry average to assess market valuation. If the offering price is at a premium or discount to recent trading prices, it can signal market perceptions about the company's growth potential. The successful closing and the market's response post-closing will provide insights into investor confidence and could influence peer companies considering similar fundraising efforts.

BOSTON--(BUSINESS WIRE)-- Astria Therapeutics, Inc. (“Astria Therapeutics,” “Astria,” the “Company,” “our,” or “us”) (Nasdaq: ATXS), a biopharmaceutical company focused on developing life-changing therapies for allergic and immunological diseases, today announced the pricing of an underwritten offering of 10,340,000 shares of its common stock. Each share of common stock is being sold at a price of $12.09. The aggregate gross proceeds of the offering are expected to be approximately $125 million, before deducting underwriting discounts and commissions and other estimated offering expenses.

All of the securities are being offered by Astria. The offering is expected to close on or about February 1, 2024, subject to satisfaction of customary closing conditions.

The financing was led by RA Capital Management, with participation from Perceptive Advisors, Venrock Healthcare Capital Partners, TCGX, Driehaus Capital Management and Adage Capital Partners L.P., in addition to other existing shareholders.

Jefferies and Evercore ISI are acting as joint book-running managers for the offering. LifeSci Capital is acting as lead manager.

The securities described above are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-276057), which was declared effective by the Securities and Exchange Commission (the “SEC”) on December 29, 2023. The offering is being made only by means of a prospectus supplement and the accompanying prospectus. A final prospectus supplement relating to the offering will be filed with the SEC and will be available at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus may be obtained for free by contacting 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; or Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52^nd Street, 35^th Floor, New York, NY 10055, or by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 Astria Therapeutics

Astria Therapeutics is a biopharmaceutical company, and our mission is to bring life-changing therapies to patients and families affected by allergic and immunological diseases. Our lead program, STAR-0215, is a monoclonal antibody inhibitor of plasma kallikrein in clinical development for the treatment of hereditary angioedema. STAR-0310 is a monoclonal antibody OX40 antagonist in preclinical development for the treatment of atopic dermatitis.

Cautionary Note Regarding Forward Looking Statements

Any statements in this press release about future expectations, plans and prospects for the Company, including statements about the anticipated completion of the offering and the expected gross proceeds of the offering, among other things, and statements containing the words “believes,” “anticipates,” “plans,” “expects,” “may” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks and uncertainties associated with market conditions, the satisfaction of customary closing conditions relating to the offering, as well as uncertainties inherent in the initiation and completion of preclinical studies and clinical trials and clinical development of the Company’s product candidates; whether interim results from a clinical trial will be predictive of the final results of the trial or the results of future trials; expectations for regulatory approvals to conduct trials or to market products; availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements; other matters that could affect the availability or commercial potential of the Company’s product candidates; and general economic and market conditions and other factors discussed in the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, which is on file with the SEC, and in other filings that the Company has made and may make with the SEC in the future. In addition, the forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130417221/en/

Investor Relations and Media:

Elizabeth Higgins

investors@astriatx.com

Source: Astria Therapeutics, Inc.

FAQ

What is the ticker symbol for Astria Therapeutics, Inc.?

The ticker symbol for Astria Therapeutics, Inc. is ATXS.

How many shares of common stock are being offered in the underwritten offering?

10,340,000 shares of common stock are being offered in the underwritten offering.

At what price is each share of common stock being sold in the offering?

Each share of common stock is being sold at a price of $12.09.

What are the expected gross proceeds of the offering?

The aggregate gross proceeds of the offering are expected to be approximately $125 million.

Who is offering the securities in the underwritten offering?

All of the securities are being offered by Astria Therapeutics, Inc.