Dyne Therapeutics Announces Pricing of $325.5 Million Public Offering of Common Stock

Rhea-AI Summary

Dyne Therapeutics, a clinical-stage company focused on muscle diseases, has announced the pricing for a public offering of 10,500,000 shares of its common stock at $31.00 per share, expected to generate $325.5 million in gross proceeds. The offering is set to close around May 24, 2024, with an additional option for underwriters to buy up to 1,575,000 more shares. Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities are joint book-running managers, while Oppenheimer & Co. and Raymond James are co-managers. The offering is conducted under a previously filed S-3 registration with the SEC.

Positive

• Dyne Therapeutics to raise $325.5 million in gross proceeds from the public offering.
• Shares offered at a price of $31.00 each, indicating strong market interest.
• Option for underwriters to purchase an additional 1,575,000 shares, potentially increasing total capital raised.
• Well-established financial institutions managing the offering, including Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities.

Negative

• Potential dilution of existing shares due to the public offering of 10,500,000 shares.
• Expenses related to underwriting discounts, commissions, and other offering costs will reduce net proceeds.
• Stock performance may be affected negatively if market perceives the dilution unfavorably.

Financial Analyst

Dyne Therapeutics has announced a public offering of $325.5 million in common stock, which is noteworthy for investors. A capital raise of this magnitude implies significant operational and developmental plans. This will likely impact the company’s balance sheet, providing it with the necessary funds to continue its clinical trials and advance its research pipeline. The offering price of $31.00 per share indicates market confidence in Dyne's future prospects.

From a financial perspective, the offering will enhance liquidity, possibly reducing the need for debt financing. This can lead to a stronger financial position, allowing the company to invest heavily in R&D. However, investors should be aware of potential dilution risks, as the increase in outstanding shares can dilute existing shareholders' value. The company's ability to effectively utilize these funds will be important in justifying the dilution and realizing shareholder value in the long term.

Considering the involvement of major underwriters like Morgan Stanley and Jefferies, the offering has been well-received by the market. This association with top-tier investment banks often lends credibility and can positively influence investor sentiment.

Market Research Analyst

For a clinical-stage company like Dyne Therapeutics, the public offering is a strategic move aimed at securing funds to support ongoing and future trials. The biotech sector often requires substantial capital for developing and testing new therapeutics, particularly for genetically driven diseases as Dyne focuses on. The timing of this offering suggests that Dyne is likely at a critical juncture in its clinical development plans.

From a market perspective, the additional funds can expedite the progress of their clinical trials, potentially bringing them closer to market-ready products. This could significantly enhance their competitive position in the biotech sector. However, investors should monitor the clinical milestones and regulatory updates closely, as these will be key determinants of Dyne's market valuation and success.

It's essential to consider the market conditions under which this capital is being raised. The positive reception indicates favorable market conditions and investor confidence in Dyne's potential. Yet, the biotech market is inherently volatile and driven by clinical results, so the upcoming months will be critical for assessing the impact of this offering on Dyne's market trajectory.

WALTHAM, Mass., May 21, 2024 (GLOBE NEWSWIRE) -- Dyne Therapeutics, Inc. (Nasdaq: DYN), a clinical-stage muscle disease company focused on advancing innovative life-transforming therapeutics for people living with genetically driven diseases, today announced the pricing of an underwritten public offering of 10,500,000 shares of its common stock at a public offering price of $31.00 per share. The gross proceeds to Dyne from the offering, before deducting underwriting discounts and commissions and offering expenses payable by Dyne, are expected to be $325.5 million. All shares in the offering are being sold by Dyne. The offering is expected to close on or about May 24, 2024, subject to customary closing conditions. In addition, Dyne has granted the underwriters a 30-day option to purchase up to an additional 1,575,000 shares of its common stock at the public offering price, less the underwriting discounts and commissions.

Morgan Stanley, Jefferies, Stifel and Guggenheim Securities are acting as joint book-running managers for the offering. Oppenheimer & Co. and Raymond James are acting as co-managers for the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024 and became automatically effective upon filing. This offering is being made only by means of a prospectus supplement and accompanying prospectus that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the offering has been filed with the SEC and may be obtained for free by visiting the SEC’s website at www.sec.gov. A final prospectus supplement relating to the offering will be filed with the SEC. When available, copies of the final prospectus supplement and the accompanying prospectus may also be obtained by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; 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; Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

This press release shall not constitute an offer to sell, or a 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 Dyne Therapeutics

Dyne Therapeutics is a clinical-stage muscle disease company focused on advancing innovative life-transforming therapeutics for people living with genetically driven diseases. With its proprietary FORCE™ platform, Dyne is developing modern oligonucleotide therapeutics that are designed to overcome limitations in delivery to muscle tissue. Dyne has a broad pipeline for serious muscle diseases, including clinical programs for myotonic dystrophy type 1 (DM1) and Duchenne muscular dystrophy (DMD) and a preclinical program for facioscapulohumeral muscular dystrophy (FSHD).

Forward-Looking Statements  

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements relating to the anticipated closing date of the public offering, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” or “would,” or the negative of these terms, or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Dyne may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various important factors, including the risks and uncertainties related to the satisfaction of customary closing conditions for the public offering and other factors discussed in the “Risk Factors” section of the preliminary prospectus supplement filed with the SEC on May 20, 2024, as well as the risks and uncertainties identified in Dyne’s filings with the SEC, including Dyne’s most recent Form 10-Q and in subsequent filings Dyne may make with the SEC. In addition, the forward-looking statements included in this press release represent Dyne’s views as of the date of this press release. Dyne anticipates that subsequent events and developments will cause its views to change. However, while Dyne may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Dyne’s views as of any date subsequent to the date of this press release.

Contacts:

Investors
Amy Reilly
areilly@dyne-tx.com
857-341-1203

Media
Stacy Nartker
snartker@dyne-tx.com
781-317-1938

FAQ

What is Dyne Therapeutics' recent public offering price?

Dyne Therapeutics has priced its public offering at $31.00 per share.

How many shares is Dyne Therapeutics offering in its latest public offering?

Dyne Therapeutics is offering 10,500,000 shares in its latest public offering.

How much does Dyne Therapeutics expect to raise from the public offering?

Dyne Therapeutics expects to raise $325.5 million in gross proceeds from the public offering.

When is Dyne Therapeutics' public offering expected to close?

Dyne Therapeutics' public offering is expected to close on or about May 24, 2024.

Which financial institutions are managing Dyne Therapeutics' public offering?

The offering is managed by Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities, with Oppenheimer & Co. and Raymond James acting as co-managers.

What is the additional option for underwriters in Dyne Therapeutics' public offering?

Underwriters have a 30-day option to purchase up to an additional 1,575,000 shares at the public offering price.