Ionis announces pricing of $500.3 million public offering

Rhea-AI Summary

Ionis Pharmaceuticals (Nasdaq: IONS) has announced the pricing of a public offering of 11,500,000 shares of common stock at $43.50 per share, expecting to raise approximately $500.3 million in gross proceeds. The offering, set to close on September 11, 2024, includes a 30-day option for underwriters to purchase up to an additional 1,725,000 shares. Net proceeds will fund independent commercial launches, late-stage clinical programs, earlier pipeline programs, research and development activities, working capital, and general corporate purposes. Morgan Stanley and Goldman Sachs & Co. are acting as joint book-running managers for the offering.

Positive

• Significant capital raise of $500.3 million through public offering
• Funds to support commercial launches and clinical programs
• Investment in research and development activities

Negative

• Potential dilution of existing shareholders' ownership
• Increase in outstanding shares may put downward pressure on stock price

Insights

Financial Analyst

Ionis Pharmaceuticals' $500.3 million public offering is a significant capital raise, priced at $43.50 per share. This move strengthens their financial position, potentially accelerating their pipeline development and commercial initiatives. The 30% overallotment option could boost proceeds to $575.3 million if fully exercised.

The offering's success hinges on market reception, but it demonstrates investor confidence in Ionis' future prospects. However, shareholders should be aware of potential dilution. The company's focus on funding commercial launches and R&D suggests a strategic push towards revenue generation and pipeline expansion, which could drive long-term value creation if executed effectively.

Biotech Industry Expert

This substantial capital injection positions Ionis to advance its ambitious pipeline, particularly in RNA-targeted therapeutics. The focus on "independent commercial launches" indicates a shift towards becoming a fully integrated biopharmaceutical company, reducing reliance on partnerships for commercialization.

Investors should monitor:

• Progress of late-stage programs, especially those nearing potential FDA approval
• Expansion of earlier-stage pipeline, which could diversify risk and create new growth opportunities
• Burn rate and cash runway extension from this offering

While dilutive in the short term, this funding could accelerate Ionis' transition from a primarily research-focused entity to a commercial-stage company, potentially enhancing long-term shareholder value.

CARLSBAD, Calif., Sept. 9, 2024 /PRNewswire/ -- Ionis Pharmaceuticals, Inc. (Nasdaq: IONS) today announced the pricing of an underwritten public offering of 11,500,000 shares of its common stock. The shares of common stock are being sold at a public offering price of $43.50 per share. The aggregate gross proceeds to Ionis from this offering are expected to be approximately $500.3 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Ionis. Ionis has granted the underwriters a 30-day option to purchase up to an additional 1,725,000 shares of its common stock at the public offering price per share, less underwriting discounts and commissions.

The offering is expected to close on September 11, 2024, subject to the satisfaction of customary closing conditions.

Ionis intends to use the net proceeds from the offering to fund its independent commercial launches, late-stage clinical programs, earlier pipeline programs, and research and development activities, as well as for working capital and general corporate purposes.

Morgan Stanley and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering.

A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission ("SEC") on November 24, 2023, and was automatically effective upon filing. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available for free on the SEC's website, located at www.sec.gov. Copies of the preliminary prospectus supplement, the accompanying prospectus and, when available, the final prospectus supplement relating to this offering may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, or by email at prospectus@morganstanley.com; and Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.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 Ionis Pharmaceuticals, Inc.

For three decades, Ionis has invented medicines that bring better futures to people with serious diseases. Ionis currently has five marketed medicines and a leading pipeline in neurology, cardiology, and other areas of high patient need. As the pioneer in RNA-targeted medicines, Ionis continues to drive innovation in RNA therapies in addition to advancing new approaches in gene editing. A deep understanding of disease biology and industry-leading technology propels our work, coupled with a passion and urgency to deliver life-changing advances for patients.

Forward-looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements include statements regarding, among other things, Ionis' expectations regarding the completion and timing of the offering, the gross proceeds Ionis expects to receive from the offering and Ionis' anticipated use of the net proceeds from the offering. Any statement describing Ionis' goals, expectations, financial or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Words such as "expected," "intend," "will," and similar expressions are intended to identify forward-looking statements. These and other risks are described in additional detail in filings that Ionis makes with the SEC from time to time, including Ionis' annual report on Form 10-K for the year ended December 31, 2023, its subsequently filed quarterly reports on Form 10-Q, the preliminary prospectus supplement related to the offering and the final prospectus supplement to be filed with the SEC. Such statements are subject to certain risks and uncertainties, including, but not limited to, those related to Ionis' business and macroeconomic and geopolitical events. Ionis' forward-looking statements also involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although Ionis' forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by Ionis. Except as required by law, Ionis undertakes no obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements.

Ionis Pharmaceuticals Investor Contact:
D. Wade Walke, Ph.D. – IR@ionis.com – 760-603-2331

Ionis Pharmaceuticals Media Contact:
Hayley Soffer – media@ionis.com – 760-603-4679

View original content to download multimedia:https://www.prnewswire.com/news-releases/ionis-announces-pricing-of-500-3-million-public-offering-302242763.html

SOURCE Ionis Pharmaceuticals, Inc.

FAQ

What is the price per share for Ionis Pharmaceuticals' (IONS) public offering?

Ionis Pharmaceuticals (IONS) has priced its public offering at $43.50 per share.

How many shares is Ionis Pharmaceuticals (IONS) offering in its public offering?

Ionis Pharmaceuticals (IONS) is offering 11,500,000 shares of common stock in its public offering, with an option for underwriters to purchase up to an additional 1,725,000 shares.

What is the expected gross proceeds from Ionis Pharmaceuticals' (IONS) public offering?

Ionis Pharmaceuticals (IONS) expects to raise approximately $500.3 million in gross proceeds from its public offering.

When is the expected closing date for Ionis Pharmaceuticals' (IONS) public offering?

The public offering by Ionis Pharmaceuticals (IONS) is expected to close on September 11, 2024.