REGENXBIO Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

REGENXBIO Inc. (RGNX) plans to offer $125 million of its common stock in a public offering, with underwriters having a 30-day option to purchase additional shares. The offering is subject to market conditions, and the final terms will be disclosed in a prospectus supplement.

Financial Analyst

The announcement by REGENXBIO Inc. of its intention to offer and sell $125 million of common stock is a significant capital-raising activity that could impact the company's financial structure and market perception. The offering's success will depend on market conditions, investor appetite and the perceived growth potential of REGENXBIO. If successful, the influx of capital could support the company's research and development activities, potentially leading to advancements in their product pipeline. However, investors should be aware of the dilutive effect of such offerings, which could lead to a decrease in earnings per share and existing shareholders' stake being reduced.

Additionally, the 30-day option for underwriters to purchase an additional 15% of common shares provides a buffer for additional capital but also introduces further potential dilution. The involvement of established financial institutions like Morgan Stanley and Goldman Sachs could be seen as a positive indicator of the offering's credibility. Investors should closely monitor the final terms of the offering, disclosed in the final prospectus supplement, for a clearer understanding of the offering's impact on the company's valuation and market position.

Market Research Analyst

The biotechnology sector, where REGENXBIO operates, is highly competitive and capital-intensive. The decision to raise additional capital through a public offering is a common strategic move for biotech companies seeking to fund ongoing research, clinical trials, or expand their operations. It is important for stakeholders to consider the company's current pipeline and stage of development to assess the potential return on investment from such a capital infusion. Market response to this offering could also serve as a barometer for investor confidence in the biotech industry's growth prospects, particularly in the therapeutic areas REGENXBIO targets.

Furthermore, the timing of the offering could be influenced by broader market trends and the current investment climate in the healthcare sector. Considering the volatility of biotech stocks, potential investors should evaluate the risk-reward profile of REGENXBIO's stock offering in the context of both the company's performance and the overall market conditions.

Legal Expert

The offering is being conducted under a shelf registration statement on Form S-3, which expedites the process of securities sales by already having a registration statement filed and automatically effective with the SEC. Interested parties should note that the offering is contingent upon market and other conditions and thus carries a degree of uncertainty. The legal framework governing such offerings ensures transparency and provides investors with necessary information through the prospectus supplement. It is critical to understand that the press release is not an offer to sell or a solicitation of an offer to buy; such transactions are strictly regulated and subject to the completion of legal requirements, including the registration or qualification under the applicable securities laws.

Prospective investors should consult the final prospectus supplement for the definitive terms of the offering, including the risk factors associated with the securities being offered. This document will contain important legal information and will be key in making an informed investment decision.

ROCKVILLE, Md., March 6, 2024 /PRNewswire/ -- REGENXBIO Inc. (Nasdaq: RGNX) today announced that it intends to offer and sell, subject to market conditions, $125,000,000 of its common stock in an underwritten public offering. 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. In addition, REGENXBIO intends to grant the underwriters a 30-day option to purchase additional common shares in an amount of up to 15% of the number of common shares sold in connection with the offering. 

Morgan Stanley, Goldman Sachs & Co. LLC, Barclays and Stifel are acting as joint book-running managers of the offering.

The securities described above are being offered by REGENXBIO pursuant to a shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission (the "SEC") on December 30, 2022 (File No. 333-269086) and became automatically effective upon filing. A preliminary prospectus supplement relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by phone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; Barclays Capital Inc., c/o Broadridge Financial Solutions, at 1155 Long Island Avenue, Edgewood, New York 11717 or by email at barclaysprospectus@broadridge.com; or 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. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of 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 applicable securities laws of such state or jurisdiction.

ABOUT REGENXBIO Inc.

REGENXBIO is a leading clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy. Since its founding in 2009, REGENXBIO has pioneered the development of AAV Therapeutics, an innovative class of gene therapy medicines. REGENXBIO is advancing a pipeline of AAV Therapeutics for retinal and rare diseases, including ABBV-RGX-314 for the treatment of wet AMD and diabetic retinopathy, being developed in collaboration with AbbVie, RGX-202 for the treatment of Duchenne and RGX-121 for the treatment of MPS II. Thousands of patients have been treated with REGENXBIO's AAV Therapeutic platform, including Novartis' ZOLGENSMA for children with spinal muscular atrophy. Designed to be one-time treatments, AAV Therapeutics have the potential to change the way healthcare is delivered for millions of people.

FORWARD-LOOKING STATEMENTS

This press release includes "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes such as "believe," "may," "will," "estimate," "continue," "anticipate," "assume," "design," "intend," "expect," "could," "plan," "potential," "predict," "seek," "should," "would" or by variations of such words or by similar expressions. The forward-looking statements include statements relating to, among other things, whether REGENXBIO will be able to raise capital through its proposed offering of common stock. REGENXBIO has based these forward-looking statements on its current expectations and assumptions and analyses made by REGENXBIO in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors REGENXBIO believes are appropriate under the circumstances. However, whether actual results and developments will conform with REGENXBIO's expectations and predictions is subject to a number of risks and uncertainties, including the timing of enrollment, commencement and completion and the success of clinical trials conducted by REGENXBIO, its licensees and its partners, the timing of commencement and completion and the success of preclinical studies conducted by REGENXBIO and its development partners, the timely development and launch of new products, the ability to obtain and maintain regulatory approval of product candidates, the ability to obtain and maintain intellectual property protection for product candidates and technology, trends and challenges in the business and markets in which REGENXBIO operates, the size and growth of potential markets for product candidates and the ability to serve those markets, the rate and degree of acceptance of product candidates, and other factors, many of which are beyond the control of REGENXBIO. Refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of REGENXBIO's Annual Report on Form 10-K for the year ended December 31, 2023 and comparable "risk factors" sections of REGENXBIO's Quarterly Reports on Form 10-Q and other filings, which have been filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC's website at WWW.SEC.GOV. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on REGENXBIO or its businesses or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date of this press release. Except as required by law, REGENXBIO does not undertake any obligation, and specifically declines any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Zolgensma^® is a registered trademark of Novartis Gene Therapies. All other trademarks referenced herein are registered trademarks of REGENXBIO.

CONTACTS:

Dana Cormack
Corporate Communications
Dcormack@regenxbio.com 

Chris Brinzey, ICR Westwicke
339-970-2843
Chris.Brinzey@westwicke.com

 

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SOURCE REGENXBIO Inc.

FAQ

What is REGENXBIO Inc. planning to offer in a public offering?

REGENXBIO Inc. (RGNX) plans to offer $125 million of its common stock in a public offering.

Who are the joint book-running managers of the offering for REGENXBIO Inc.?

Morgan Stanley, Goldman Sachs & Co. LLC, Barclays, and Stifel are acting as joint book-running managers of the offering for REGENXBIO Inc.

What is the 30-day option granted to the underwriters by REGENXBIO Inc.?

REGENXBIO Inc. intends to grant the underwriters a 30-day option to purchase additional common shares in an amount of up to 15% of the number of common shares sold in connection with the offering.

Where can one obtain the preliminary prospectus supplement for the offering by REGENXBIO Inc.?

Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may be obtained from Morgan Stanley, Goldman Sachs & Co. LLC, Barclays, or Stifel.

Is this press release an offer to sell securities?

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities.