Biohaven Announces Pricing of $230 Million Public Offering of Common Shares

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Biohaven announced the pricing of a $230 million public offering of 5,609,757 common shares at $41.00 per share, with an option for additional shares. The offering is expected to close on April 22, 2024. Proceeds will be used for general corporate purposes. J.P. Morgan, Morgan Stanley, TD Cowen, and Piper Sandler & Co. are the lead book-running managers.

Financial Analyst

Biohaven's move to price a public offering of over 5.6 million shares at $41.00 per share can be seen as a strategic action to raise capital, projecting gross proceeds of approximately $230 million. This capital infusion is vital for the biopharmaceutical company, given its involvement in high-cost industries like immunology, neuroscience and oncology. With the biotech sector notorious for its burn rate due to extensive R&D and clinical trial phases, this additional funding can be pivotal in ensuring the continuation of their projects. It's worth noting that the share price for the offering could reflect current market sentiments and the perceived value of Biohaven's pipeline of treatments. Investors would be wise to monitor the closure of this offering and how the proceeds are allocated, which could influence the company's financial health and future prospects.

Biotechnology Industry Analyst

Biohaven's announcement is significant when you consider the broader context of the biotech industry, where profitability is often a long-term goal. The net proceeds destined for general corporate purposes will likely support ongoing research and potential commercialization efforts. Given the competitive nature of the biotech field, where the race to market can make or break a company, the funds raised could help Biohaven maintain a necessary edge. Investors should consider the company's current development pipeline and the stages of clinical trials to get a clearer picture of potential future revenues. This offering might also be seen as a sign of confidence from the underwriters, suggesting that there is institutional belief in Biohaven's value proposition.

NEW HAVEN, Conn., April 18, 2024 /PRNewswire/ -- Biohaven Ltd. (NYSE: BHVN), a biopharmaceutical company focused on the discovery, development, and commercialization of life-changing treatments in key therapeutic areas, including immunology, neuroscience, and oncology, today announced the pricing of its underwritten public offering of 5,609,757 of its common shares at a price to the public of $41.00 per share.  In addition, Biohaven has granted the underwriters a 30-day option to purchase up to an additional 841,463 common shares at the public offering price, less underwriting discounts, and commissions.  The gross proceeds from the offering are expected to be approximately $230 million before deducting underwriting discounts and commissions and offering expenses payable by Biohaven.  The offering is expected to close on April 22, 2024, subject to satisfaction of customary closing conditions. Biohaven intends to use the net proceeds received from the offering for general corporate purposes.

J.P. Morgan, Morgan Stanley, TD Cowen, and Piper Sandler & Co. are acting as the joint lead book-running managers of the offering. Cantor is acting as a book-runner of the offering.  Baird is also acting as a book-runner of the offering.

The offering is being made only by means of a prospectus supplement and the accompanying prospectus, copies of which, when available, may be obtained from the offices of the following: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com, Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com,  and Piper Sandler & Co., 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, Attention: Prospectus Department, by telephone at (800) 747-3924 or by email at prospectus@psc.com.

The shares will be issued pursuant to an effective shelf registration statement on Form S-3.  Copies of the registration statement can be accessed through the SEC's website at www.sec.gov.  This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of such state or jurisdiction.

Forward-looking Statements

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of certain words, including "continue", "plan", "will", "believe", "may", "expect", "anticipate" and similar expressions, is intended to identify forward-looking statements. Investors are cautioned that any forward-looking statements, including statements regarding the expected closing of the public offering and the expected use of proceeds therefrom are not guarantees of future performance or results and involve substantial risks and uncertainties. Actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors including: Biohaven's ability to complete the offering of its common shares on the proposed terms, or at all, and Biohaven's expectations related to the use of proceeds from the offering of its common shares. Additional important factors to be considered in connection with forward-looking statements are described in Biohaven's filings with the Securities and Exchange Commission, including within the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". The forward-looking statements are made as of the date of this new release, and Biohaven does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:

Jennifer Porcelli
Vice-President, Investor Relations
jennifer.porcelli@biohavenpharma.com
201-248-0741

Media Contact:

Mike Beyer
Sam Brown Inc.
mikebeyer@sambrown.com
312-961-2502

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SOURCE Biohaven Ltd.

FAQ

What is the pricing of Biohaven's public offering of common shares?

Biohaven priced its public offering at $41.00 per share, totaling approximately $230 million.

How many common shares are included in Biohaven's public offering?

Biohaven's public offering consists of 5,609,757 common shares.

When is the expected closing date for Biohaven's public offering?

The offering is expected to close on April 22, 2024.

Which companies are the joint lead book-running managers for Biohaven's offering?

J.P. Morgan, Morgan Stanley, TD Cowen, and Piper Sandler & Co. are the joint lead book-running managers for Biohaven's offering.

What will Biohaven use the net proceeds from the offering for?

Biohaven intends to use the net proceeds for general corporate purposes.