CRISPR Therapeutics Announces $280 Million Registered Direct Offering
CRISPR Therapeutics (CRSP) secures $280 million investment to advance clinical trials and gene writing programs, strengthening balance sheet with over $2.1 billion in pro forma cash.
The infusion of $280 million into CRISPR Therapeutics through a registered direct offering demonstrates a robust vote of confidence from institutional investors, particularly EcoR1 Capital and SR One. This capital raise is significant as it is priced at a premium of over 10% to the 30-day volume-weighted average price of CRISPR's shares, hinting at bullish sentiment towards the company's prospects. The pro forma cash position exceeding $2.1 billion equips the biopharmaceutical firm with a fortified balance sheet, which is critical for sustaining long-term R&D efforts and clinical trials.
The premium pricing also suggests a favorable market perception and a strong demand for the company's shares. Institutional investors often seek stability and growth potential and their participation could be indicative of positive expectations for CRISPR's pipeline, particularly in the high-impact areas of oncology, cardiovascular, diabetes, autoimmune diseases and gene writing technologies. For stakeholders, the short-term implications include a strengthened financial position that may facilitate strategic initiatives and collaborations. In the long term, this could translate into accelerated product development and potential market leadership in gene-based therapies, provided the clinical trials yield positive outcomes.
CRISPR Therapeutics' ongoing clinical trials in oncology, cardiovascular and diabetes are at the forefront of medical innovation, particularly with the company's focus on gene-based medicines . The additional funding is poised to expedite the development of therapies in these areas, which are not only high in demand but also represent a significant portion of the healthcare market due to the prevalence of these conditions.
Furthermore, the mention of advancing auto-immune and in vivo gene writing programs suggests that CRISPR Therapeutics is pushing the envelope in genetic editing technologies. 'In vivo' gene writing refers to the process of directly editing genes within the human body, as opposed to 'ex vivo' techniques where cells are modified outside the body and then reintroduced. This approach could revolutionize treatment paradigms across multiple disease states, offering potentially curative outcomes. The success of these programs could lead to a paradigm shift in the treatment of genetic disorders, potentially improving patient outcomes and reducing long-term healthcare costs.
The gene editing sector and CRISPR technology in particular, is a rapidly growing field with significant investor interest. The ability of CRISPR Therapeutics to secure a $280 million investment at a premium indicates strong market demand and potential for the technology. It also reflects investor confidence in the company's strategic direction and its R&D capabilities.
Competitive analysis within the biotech sector shows that companies with robust pipelines and advanced-stage clinical trials tend to attract more investor attention and command higher valuations. CRISPR Therapeutics' focus on diverse therapeutic areas, including oncology and cardiovascular diseases, aligns with the broader industry trend of personalized medicine. As the company progresses with its trials and potentially brings new treatments to market, it could capture significant market share, provided that regulatory approvals are secured and the treatments demonstrate cost-effectiveness alongside clinical efficacy.
02/13/2024 - 08:30 AM
- Led by new investor EcoR1 Capital and SR One with participation from existing and new investors -
- Well positioned to execute on our on-going clinical trials in oncology, cardiovascular and diabetes, and further accelerate our auto-immune and in vivo gene writing programs -
- Further strengthens balance sheet with pro forma cash position >$2.1 billion -
ZUG, Switzerland and BOSTON, Feb. 13, 2024 (GLOBE NEWSWIRE) -- CRISPR Therapeutics (Nasdaq: CRSP), a biopharmaceutical company focused on creating transformative gene-based medicines for serious diseases, today announced that it has entered into an investment agreement for the sale of approximately $280 million of its common shares (the “Shares”) to a select group of institutional investors in a registered direct offering, at a price per share of $71.50 , representing a premium of greater than 10% to CRISPR Therapeutics’ 30-day volume-weighted average price. The financing is expected to close on or about February 27, 2024, subject to customary closing conditions.
The financing is being led by EcoR1 Capital and SR One with participation from existing investors and a leading healthcare specialist investor.
“We are pleased with the quality of the new and existing long-term investors as we accelerate our programs and expand our pipeline with the goal of delivering paradigm-shifting gene editing therapies to patients,” said Samarth Kulkarni, Ph.D., Chief Executive Officer and Chairman of CRISPR Therapeutics. “We are well positioned to execute on our on-going clinical trials in oncology, cardiovascular and diabetes, and further accelerate our auto-immune and in vivo gene writing programs, setting up a catalyst-rich 12-18 months for the company. This financing bolsters our already strong balance sheet, provides the opportunity for additional value creation, and gives us the flexibility to reach sustainability without requiring additional capital.”
The Shares were offered pursuant to an automatically effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 29, 2021 (File No. 333-258274). A final prospectus supplement containing additional information relating to the offering, will be filed with the SEC and will be available on 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, 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 CRISPR Therapeutics www.crisprtx.com .
(CRSP-GEN)
CRISPR Therapeutics Forward-Looking Statement This press release may contain a number of “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including the expected closing of the offering. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects” and similar expressions are intended to identify forward-looking statements. You are cautioned that forward-looking statements are inherently uncertain. Although CRISPR Therapeutics believes that such statements are based on reasonable assumptions within the bounds of its knowledge of its business and operations, existing and prospective investors are cautioned that forward-looking statements are inherently uncertain, are neither promises nor guarantees and not to place undue reliance on such statements, which speak only as of the date they are made. Actual performance and results may differ materially from those projected or suggested in the forward-looking statements due to various risks and uncertainties. These risks and uncertainties include, among others, those risks and uncertainties described under the heading “Risk Factors” in CRISPR Therapeutics’ most recent annual report on Form 10-K, quarterly report on Form 10-Q, and in any other subsequent filings made by CRISPR Therapeutics with the U.S. Securities and Exchange Commission, which are available on the SEC's website at www.sec.gov. CRISPR Therapeutics disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, other than to the extent required by law.
Investor Contact: susan.kim@crisprtx.com
Media Contact: rachel.eides@crisprtx.com
What is the purpose of the investment agreement announced by CRISPR Therapeutics?
The investment agreement aims to sell approximately $280 million of common shares to institutional investors to fund ongoing clinical trials and gene writing programs.
What is the price per share in the registered direct offering by CRISPR Therapeutics?
The price per share in the offering is $71.50, representing a premium of over 10% to the company's 30-day volume-weighted average price.
How much is CRISPR Therapeutics' pro forma cash position after the financing?
CRISPR Therapeutics' balance sheet is further strengthened with a pro forma cash position exceeding $2.1 billion.
