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Kyverna Therapeutics Announces Closing of Initial Public Offering and Full Exercise of Underwriters' Option to Purchase Additional Shares

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Kyverna Therapeutics, Inc. successfully closed an upsized IPO, raising approximately $366.9 million through the sale of 16,675,000 shares of common stock at $22.00 per share. The company's common stock began trading on the Nasdaq Global Select Market under the symbol 'KYTX'. J.P. Morgan, Morgan Stanley, Leerink Partners, and Wells Fargo Securities acted as joint book-running managers for the offering.
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The successful closing of Kyverna Therapeutics' upsized initial public offering (IPO) is a significant financial event, indicative of strong investor interest. The full exercise of the underwriters' option to purchase additional shares suggests a robust demand, which is often interpreted as a positive signal about the market's confidence in the company's value proposition. The gross proceeds of approximately $366.9 million provide substantial capital that can be deployed towards advancing the company's pipeline of cell therapies for autoimmune diseases.

From a financial standpoint, the influx of capital raises considerations for valuation and future growth potential. The use of proceeds is a critical factor; if invested effectively in research and development (R&D), it could lead to groundbreaking treatments that disrupt the autoimmune disease market. However, there is also the risk associated with the high costs and uncertainty inherent in clinical-stage development. Investors will closely monitor R&D progress and any strategic use of funds for potential partnerships or acquisitions that could enhance Kyverna's market position.

Kyverna Therapeutics' focus on developing cell therapies for autoimmune diseases places it within a highly innovative and competitive segment of the biopharmaceutical industry. Cell therapy represents a cutting-edge approach to treatment, potentially offering more targeted and effective remedies compared to traditional pharmaceuticals. The success of this IPO provides Kyverna with the financial resources to potentially accelerate clinical trials and invest in the development of its therapeutic candidates.

Investors and stakeholders will be particularly interested in the company's strategic plan to navigate the complex regulatory environment, which includes meeting the U.S. Food and Drug Administration (FDA) requirements for safety and efficacy. The ability to reach clinical endpoints and demonstrate tangible benefits to patients can significantly influence the company's valuation and stock performance in the long term. The R&D outcomes will be pivotal in determining Kyverna's place within the biotech sector and its impact on the treatment of autoimmune diseases.

The entrance of Kyverna Therapeutics into the public market via an IPO is a noteworthy development for the biotech sector, particularly for companies specializing in cell therapy. The initial trading on the Nasdaq Global Select Market under the ticker symbol 'KYTX' introduces a new investment opportunity for market participants. The role of the joint book-running managers, including prominent financial institutions like J.P. Morgan and Morgan Stanley, underscores the strategic importance of the offering and its execution.

Market trends indicate a growing interest in biotech firms with innovative therapeutic platforms and Kyverna's successful IPO could act as a bellwether for similar companies considering going public. The stock's performance post-IPO will be a key indicator of market sentiment towards the biotech sector, especially within the niche of autoimmune disease treatments. Additionally, the stock's liquidity and volatility will be essential metrics for investors assessing the risk-return profile of Kyverna in the context of their portfolios.

EMERYVILLE, Calif., Feb. 12, 2024 /PRNewswire/ -- Kyverna Therapeutics, Inc. (Kyverna), a patient-centered clinical-stage biopharmaceutical company focused on developing cell therapies for patients suffering from autoimmune diseases, today announced the closing of its upsized initial public offering of 16,675,000 shares of its common stock, which includes the exercise in full by the underwriters of their option to purchase 2,175,000 additional shares, at an initial public offering price of $22.00 per share. All of the shares were offered by Kyverna. The aggregate gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Kyverna, were approximately $366.9 million. Kyverna's common stock began trading on the Nasdaq Global Select Market on February 8, 2024 under the ticker symbol "KYTX."

J.P. Morgan, Morgan Stanley, Leerink Partners, and Wells Fargo Securities acted as joint book-running managers for the offering.

A registration statement relating to the offering has been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on February 7, 2024. A prospectus relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from 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, NY 10014, or by email at prospectus@morganstanley.com; Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; and Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at 800-645-3751 (option #5) or email a request to WFScustomerservice@wellsfargo.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 offer or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Kyverna Therapeutics
Kyverna is a patient-centered, clinical-stage biopharmaceutical company focused on developing cell therapies for patients suffering from autoimmune diseases. Our lead product candidate, KYV-101 is advancing through clinical development across two broad areas of autoimmune disease: rheumatology and neurology, including Phase 2 trials for multiple sclerosis and myasthenia gravis, a Phase 1/2 trial for systemic sclerosis, and two ongoing multi-center, open-label Phase 1 trials in the United States and Germany for patients with lupus nephritis.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." The words, without limitation, "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the final prospectus. Any forward-looking statements contained in this press release are based on the current expectations of Kyverna's management team and speak only as of the date hereof, and Kyverna specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Kyverna Media Contact:
Consort Partners for Kyverna
kyvernatx@consortpartners.com

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SOURCE Kyverna Therapeutics

The ticker symbol for Kyverna Therapeutics, Inc. is 'KYTX'.

Kyverna Therapeutics, Inc. sold 16,675,000 shares of common stock in the IPO.

The offering price per share in the IPO was $22.00.

J.P. Morgan, Morgan Stanley, Leerink Partners, and Wells Fargo Securities acted as joint book-running managers for the IPO.

Kyverna Therapeutics, Inc.'s common stock began trading on the Nasdaq Global Select Market.

Approximately $366.9 million was raised in gross proceeds from the offering.

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