BridgeBio Pharma Announces Pricing of Public Offering of Common Stock
BridgeBio Pharma, Inc. announces a public offering of 8,620,690 shares of common stock at $29.00 per share, expecting gross proceeds of approximately $250.0 million. The offering includes an option for underwriters to purchase additional shares.
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BridgeBio Pharma, Inc. announced a public offering of 8,620,690 shares of its common stock at a price of $29.00 per share.
The gross proceeds from the offering, excluding expenses, are expected to reach around $250.0 million.
Underwriters have the option to buy an additional 1,293,103 shares of common stock under the same terms.
J.P. Morgan, Cantor, and Mizuho are the joint book-running managers, with Raymond James as the lead manager for the offering.
The offering is anticipated to close on or around the specified date.
The public offering of 8,620,690 shares by BridgeBio Pharma at a price of $29.00 per share represents a significant capital infusion for the company, with potential gross proceeds of approximately $250 million. This capital raise is a strategic move to bolster the company's balance sheet, potentially funding ongoing research and development (R&D) activities, commercialization efforts and possibly facilitating future strategic acquisitions or partnerships.
Investors should note that the offering price can often reflect the current market's valuation of the company. The pricing at $29.00 per share may suggest investor confidence in BridgeBio's future prospects or a need for the company to offer a discount to the market price to attract sufficient interest. The underwriters' option for an additional 1,293,103 shares also indicates a potential for over-allotment, which could lead to dilution of existing shares but also provide additional capital if exercised.
It's important to consider the company's current financial health, including cash reserves and burn rate, as these factors will influence the necessity and impact of the capital raise. The involvement of reputable financial institutions as book-running managers and lead manager can be seen as a positive signal, potentially indicating a well-managed offering process.
The biopharmaceutical sector is highly competitive, with significant capital requirements for R&D and lengthy regulatory approval processes. BridgeBio's focus on genetic diseases and cancers places it in a high-growth potential market but also in one that is research-intensive and risky. The successful pricing of a public offering can be an indicator of market sentiment towards the company's pipeline and future revenue streams.
Market response to such offerings can be mixed, depending on the perceived use of proceeds and the company's track record. If BridgeBio has a promising drug pipeline or recent successful drug approvals, the offering could be seen as a way to accelerate growth. Conversely, if the company is facing challenges or delays in its pipeline, the market could view the offering as a necessity to keep operations afloat, which may affect the stock performance negatively in the short term.
Long-term implications for stakeholders include the potential for share dilution but also the opportunity for the company to achieve milestones that could drive up the stock price. The offering's timing and size relative to the company's market capitalization should be considered by investors when evaluating its potential impact.
BridgeBio's public offering is a common financial strategy in the biotech industry, where companies often rely on public markets to raise capital due to the high costs associated with drug development. The specifics of the offering, such as the number of shares and the price, provide insight into the company's valuation and the appetite of public investors for biotech stocks.
Analyzing the company's recent R&D milestones, drug pipeline status and any strategic partnerships will be critical in understanding the potential return on investment from this capital raise. Investors often look for a balance between a company's short-term financial needs and its long-term growth prospects. BridgeBio's decision to sell all of the shares in the offering, instead of including secondary shares from existing shareholders, suggests that the proceeds are intended for corporate purposes rather than providing an exit for early investors.
The biotech sector is subject to rapid changes due to technological advances and regulatory decisions. Thus, the success of BridgeBio's public offering and subsequent stock performance will likely be influenced by the company's ability to navigate these dynamics and effectively deploy the raised capital towards value-generating activities.
03/05/2024 - 11:53 PM
PALO ALTO, Calif., March 05, 2024 (GLOBE NEWSWIRE) -- BridgeBio Pharma, Inc. (Nasdaq: BBIO) (“BridgeBio”), a commercial-stage biopharmaceutical company focused on genetic diseases and cancers, today announced the pricing on March 5, 2024 of an underwritten public offering of 8,620,690 shares of its common stock at a public offering price of $29.00 per share, before deducting underwriting discounts and commissions. In addition, BridgeBio has granted the underwriters a 30-day option to purchase up to an additional 1,293,103 shares of its common stock on the same terms and conditions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be approximately $250.0 million , excluding any exercise of the underwriters' option to purchase additional shares. All of the shares in the offering to be sold by BridgeBio.
J.P. Morgan, Cantor and Mizuho are acting as joint book-running managers for the offering. Raymond James is acting as lead manager. The offering is expected to close on or about March 8, 2024, subject to the satisfaction of customary closing conditions.
The shares of common stock are being offered by BridgeBio pursuant to an effective shelf registration statement on Form S-3ASR (File No. 333-271650) that was previously filed with the U.S. Securities and Exchange Commission (SEC) on May 4, 2023 and automatically became effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC on March 4, 2024. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and may be obtained, when available, from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at (866) 803-9204, or by email at prospectus-eqfi@jpmorganchase.com; Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or by email at prospectus@cantor.com; Mizuho Securities USA LLC, Attention: Equity Capital Markets, 1271 Avenue of the Americas, 3rd Floor, New York, New York 10020, by telephone at 1-212-205-7602 or by email at US-ECM@mizuhogroup.com; or by accessing the SEC’s website at www.sec.gov.
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 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 BridgeBio
BridgeBio is a commercial-stage biopharmaceutical company founded to discover, create, test and deliver transformative medicines to treat patients who suffer from genetic diseases and cancers with clear genetic drivers. BridgeBio’s pipeline of development programs ranges from early science to advanced clinical trials. BridgeBio was founded in 2015 and its team of experienced drug discoverers, developers and innovators are committed to applying advances in genetic medicine to help patients as quickly as possible.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding BridgeBio’s anticipated public offering. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “expect,” “estimate,” “seek,” “predict,” “future,” “project,” “potential,” “continue,” “target” and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
Any forward-looking statements in this press release, such as the intended offering terms, are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, uncertainties related to market conditions, statements about the expected gross proceeds from the offering, and the completion of the offering on the anticipated terms or at all. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in BridgeBio’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as discussions of potential risks, uncertainties, and other important factors in BridgeBio’s other filings with the SEC, including those contained or incorporated by reference in the preliminary prospectus supplement and accompanying prospectus related to the public offering filed with the SEC. In addition, any forward-looking statements contained in this press release represent the BridgeBio’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. BridgeBio explicitly disclaims any obligation to update any forward-looking statements, except as required by law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.
BridgeBio Contact:
BridgeBio Pharma, Inc. priced the public offering at $29.00 per share.
BridgeBio Pharma, Inc. included 8,620,690 shares in the public offering.
The expected gross proceeds from the offering by BridgeBio Pharma, Inc. are approximately $250.0 million.
J.P. Morgan, Cantor, and Mizuho are acting as joint book-running managers for the offering by BridgeBio Pharma, Inc.
Raymond James is the lead manager for the offering by BridgeBio Pharma, Inc.
