scPharmaceuticals Announces Proposed Underwritten Public Offering of Common Stock and Pre-Funded Warrants
Rhea-AI Summary
scPharmaceuticals Inc. (Nasdaq: SCPH) has announced a proposed underwritten public offering of shares of its common stock and pre-funded warrants. The company, focused on optimizing infused therapies delivery, aims to advance patient care and reduce healthcare costs. Leerink Partners and TD Cowen are acting as joint book-running managers for the offering.
The offering includes:
- Common stock shares
- Pre-funded warrants to purchase shares
- 30-day option for underwriters to purchase up to 15% additional shares
The offering is subject to market conditions, with no assurance of completion or final terms. It is being made pursuant to a shelf registration statement on Form S-3, filed with the SEC on March 13, 2024, and declared effective on March 22, 2024.
Positive
- Potential to raise capital for company operations and growth
- Offering made under an effective shelf registration statement, indicating regulatory compliance
- Involvement of reputable joint book-running managers (Leerink Partners and TD Cowen)
Negative
- Potential dilution of existing shareholders' ownership
- Uncertainty regarding the offering's completion and final terms
- Market conditions may affect the success and pricing of the offering
Insights
scPharmaceuticals' proposed public offering signals a capital-raising effort, which could be viewed as both an opportunity and a challenge. The offering of common stock and pre-funded warrants suggests the company is seeking to strengthen its financial position, potentially to fund ongoing operations, research, or expansion plans.
The inclusion of a 30-day option for underwriters to purchase additional shares indicates confidence in demand. However, this move may lead to dilution of existing shareholders' stakes. The market's reaction will likely depend on how effectively the company communicates its plans for utilizing the raised capital.
Investors should closely monitor the pricing and size of the offering when announced, as these factors will impact the degree of dilution and market perception. The involvement of reputable underwriters like Leerink Partners and TD Cowen lends credibility to the offering, potentially attracting institutional investors.
This offering comes at a time when the biotech sector is experiencing volatility, making it important to assess market appetite for new shares. The company's focus on optimizing infused therapies aligns with the broader trend of cost reduction in healthcare, which could appeal to investors seeking exposure to this sector.
However, the success of this offering will largely depend on scPharmaceuticals' ability to articulate a compelling growth story. Investors will be keen to understand the pipeline progress and commercial potential of the company's products. The use of pre-funded warrants alongside common stock offers flexibility to investors, potentially broadening the appeal of the offering.
It's worth noting that the timing of this offering, coming shortly after the effectiveness of their shelf registration, suggests a strategic move to capitalize on current market conditions. This could indicate management's positive outlook or an urgent need for capital, which investors should scrutinize carefully.
BURLINGTON, Mass., Aug. 12, 2024 (GLOBE NEWSWIRE) -- scPharmaceuticals Inc. (Nasdaq: SCPH) (the “Company”), a pharmaceutical company focused on developing and commercializing products that have the potential to optimize the delivery of infused therapies, advance patient care, and reduce healthcare costs, today announced a proposed underwritten public offering of shares (“Shares”) of its common stock or, in lieu of Shares, pre-funded warrants (the “Pre-Funded Warrants”) to purchase Shares (the “Offering”). scPharmaceuticals also expects to grant the underwriters a 30-day option to purchase up to an additional
Leerink Partners and TD Cowen are acting as joint book-running managers for the Offering.
The Offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, which was filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2024, and declared effective on March 22, 2024 (the “Registration Statement”). A preliminary prospectus supplement related to 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 base prospectus relating to the Offering, when available, may be obtained from: 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 TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, 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 the registration or qualification under the securities laws of such state or jurisdiction.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to our future expectations, beliefs, plans, strategies, objectives, results, conditions, financial performance, prospects, or other events. Such forward-looking statements include, but are not limited to, those regarding the completion of the proposed public offering and our expectation with respect to granting a 30-day option to purchase additional shares of common stock. In some cases, forward-looking statements can be identified by the use of words such as “will,” “may,” “believe,” “expect,” “look forward,” “on track,” “guidance,” “anticipate,” “estimate,” “project” and similar expressions, and the negatives thereof (if applicable).
Our forward-looking statements are based on estimates and assumptions that are made within the bounds of our knowledge of our business and operations and that we consider reasonable. However, our business and operations are subject to significant risks, and, as a result, there can be no assurance that actual results of our research, development and commercialization activities and the results of our business and operations will not differ materially from the results contemplated in such forward-looking statements. Factors that could cause actual results to differ from expectations in our forward-looking statements include the risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023, which we filed with the SEC on March 13, 2024, subsequent filings with the SEC and the preliminary prospectus supplement related to this offering.
Forward-looking statements speak only as of the date they are made and are not guarantees of future performance. Accordingly, you should not place undue reliance on forward-looking statements. We do not undertake any obligation to publicly update or revise our forward-looking statements, except as required by law.
Katherine Miranda
scPharmaceuticals Inc., 781-301-6869
kmiranda@scpharma.com
Investors:
PJ Kelleher
LifeSci Advisors, 617-430-7579
pkelleher@lifesciadvisors.com
FAQ
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