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Oyster Point Pharma Announces Pricing of an Upsized Offering of Common Stock

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Rhea-AI Summary

Oyster Point Pharma has priced its underwritten public offering of 3,750,000 shares of common stock at $28.00 per share, aiming for gross proceeds of $105 million before deductions. The offering is set to close on May 19, 2020, contingent on standard closing conditions. Additionally, underwriters have a 30-day option to purchase up to 562,500 more shares at the offering price. Oyster Point Pharma specializes in developing therapies for ocular surface diseases, with its lead product candidate, OC-01, targeting dry eye disease.

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Positive

  • Planned gross proceeds of $105 million to support development.
  • Oyster Point Pharma focuses on addressing unmet needs in ocular surface diseases.

Negative

  • Potential shareholder dilution from the offering.

News Market Reaction – OYST

-7.90%
-7.90% Session move

In the trading session that priced this news, OYST declined 7.90%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PRINCETON, N.J., May 15, 2020 (GLOBE NEWSWIRE) -- Oyster Point Pharma, Inc., a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of first-in-class pharmaceutical therapies to treat ocular surface diseases, today announced the pricing of its underwritten public offering of 3,750,000 shares of its common stock at a price to the public of $28.00 per share. All of the shares are being offered by Oyster Point Pharma.

The gross proceeds to Oyster Point Pharma from the offering, before deducting underwriting discounts and commissions and estimated offering expenses to be payable by Oyster Point Pharma, are expected to be $105.0 million. The offering is expected to close on May 19, 2020 subject to customary closing conditions. In addition, the underwriters have a 30-day option to purchase up to 562,500 additional shares of common stock at the public offering price less underwriting discounts and commissions.

J.P. Morgan Securities LLC, Cowen and Company, LLC and Piper Sandler & Co. are acting as joint book-running managers for the offering.

The offering is made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained, when available, for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus, when available, may be obtained for free from the offices of J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-866-803-9204 or by emailing prospectus-eq_fi@jpmchase.com; Cowen and Company, LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus Department, by email at PostSaleManualRequests@broadridge.com or by telephone at (833) 297-2926; or Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, via telephone at (800) 747-3924 or via email at prospectus@psc.com.

A registration statement relating to the offering has been filed with the United States Securities and Exchange Commission and was declared effective on May 14, 2020. This press release shall not constitute an offer to sell or the 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 Oyster Point Pharma
Oyster Point Pharma is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of first-in-class pharmaceutical therapies to treat ocular surface diseases. Oyster Point Pharma’s lead product candidate, OC-01 nasal spray, a highly selective nicotinic acetylcholine receptor (nAChR) agonist, is being developed to treat the signs and symptoms of dry eye disease. OC-01 nasal spray’s novel mechanism of action is designed to re-establish tear film homeostasis by activating the trigeminal parasympathetic pathway to stimulate the glands and cells responsible for natural tear film production, known as the lacrimal functional unit (LFU).

About Dry Eye Disease
Dry eye disease is a chronic, progressive condition that impacts more than 30 million Americans and is growing in prevalence. An estimated 16 million U.S. adults have been diagnosed with dry eye disease, a multifactorial condition of the ocular surface characterized by disruption of the tear film. A healthy tear film protects and lubricates the eyes, washes away foreign particles, contains growth factors and antimicrobial components to reduce the risk of infection, and creates a smooth surface that contributes refractive power for clear vision. Dry eye disease can have a significant impact on a person’s day-to-day quality of life, as it can cause persistent stinging, scratching, burning sensations, sensitivity to light, blurred vision, and eye fatigue. Despite the large prevalence of dry eye and the burden of the disease, there remains a significant unmet need for effective therapies.

Investor Contact:
Tim McCarthy
LifeSci Advisors, LLC
(212) 915-2564
investors@oysterpointrx.com

Media Contact
Jeffrey Nau PhD, MMS
President and CEO
media@oysterpointrx.com

FAQ

What is the stock symbol for Oyster Point Pharma?

The stock symbol for Oyster Point Pharma is OYST.

When is the closing date of the stock offering?

The closing date of the stock offering is set for May 19, 2020.

How many shares are being offered by Oyster Point Pharma?

Oyster Point Pharma is offering 3,750,000 shares of its common stock.

What is the public offering price for Oyster Point Pharma's shares?

The public offering price for the shares is $28.00 each.

What are the intended use of the proceeds from the stock offering?

The proceeds are expected to support the development of therapies for ocular surface diseases.

Is there an option for underwriters to purchase additional shares?

Yes, the underwriters have a 30-day option to buy up to 562,500 additional shares.