Oyster Point Pharma Proposed Public Offering of Common Stock

Rhea-AI Summary

Oyster Point Pharma has announced an underwritten public offering of 2,500,000 shares of its common stock, with the possibility of an additional 375,000 shares through a 30-day option for underwriters. The offering is subject to market conditions and a registration statement which has yet to become effective. This move aligns with their focus on developing therapies for ocular surface diseases, particularly their lead candidate, OC-01 nasal spray, for treating dry eye disease. The offering is managed by J.P. Morgan, Cowen, and Piper Sandler.

Positive

• Public offering of 2,500,000 shares could raise significant capital for further development.
• Intended use of funds may facilitate the advancement of OC-01 nasal spray for dry eye disease.

Negative

• Potential dilution of shares for existing shareholders due to the new offering.
• Market conditions may affect the successful completion of the offering.

PRINCETON, N.J., May 12, 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 that it has commenced an underwritten public offering of 2,500,000 shares of its common stock. In addition, Oyster Point Pharma intends to grant the underwriters a 30-day option to purchase up to 375,000 additional shares of common stock at the public offering price less underwriting discounts and commissions. All of the shares are being offered by Oyster Point Pharma. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.

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

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission, but has not yet become effective. The proposed offering will be made only by means of a prospectus. A copy of the preliminary prospectus 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.

These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. 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 purpose of Oyster Point Pharma's public offering of OYST shares?

The purpose of Oyster Point Pharma's public offering is to raise capital for the development of its therapies, particularly the OC-01 nasal spray for dry eye disease.

How many shares is Oyster Point Pharma offering in the stock market under the symbol OYST?

Oyster Point Pharma is offering 2,500,000 shares of its common stock, with a potential additional 375,000 shares.

Who is managing the public offering of Oyster Point Pharma's OYST shares?

The public offering is managed by J.P. Morgan Securities LLC, Cowen and Company, LLC, and Piper Sandler & Co.

What risks are associated with the public offering of OYST shares?

The main risks include potential dilution of existing shareholders and uncertainty regarding market conditions affecting the offering's completion.