STOCK TITAN

Savara Announces Pricing of $100.0 Million Underwritten Offering of Common Stock

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Savara, a clinical-stage biopharmaceutical company focused on rare respiratory diseases, has announced the pricing of an underwritten offering of 26,246,720 shares of its common stock at $3.81 per share. This offering aims to raise approximately $100.0 million before deducting underwriting discounts and commissions. The offering involves notable investors such as Bain Capital Life Sciences and Wellington Management and is expected to close on July 1, 2024, subject to customary conditions. Jefferies, Piper Sandler, and Guggenheim Securities are the joint book-running managers, with Oppenheimer & Co. as the lead manager. The offering is conducted under Savara's existing shelf registration statement filed with the SEC. Detailed prospectus information can be obtained from the involved financial institutions or the SEC website.

Positive
  • Savara aims to raise approximately $100.0 million, which will strengthen its financial position.
  • The offering included prominent investors like Bain Capital Life Sciences, potentially increasing market confidence.
  • Funds raised can support the development of treatments for rare respiratory diseases, potentially leading to future growth.
Negative
  • Issuing 26,246,720 new shares will result in shareholder dilution.

The announcement from Savara regarding the pricing of their $100 million underwritten offering of common stock provides several key insights for investors. Such offerings are common for biotech firms, especially those in clinical stages, as they often need significant capital to fund ongoing research and development.

Firstly, the $3.81 per share price is a critical figure. Investors should note that this pricing can be a double-edged sword: while it dilutes existing shareholders, it provides necessary funding. The underwriters—Jefferies, Piper Sandler and Guggenheim Securities—are reputable, which does bring some confidence regarding the offering's success.

Secondly, the involvement of prominent investors like Bain Capital Life Sciences and Wellington Management adds credibility and suggests that institutional investors view Savara's pipeline and business model positively. This could be a bullish signal for retail investors.

Lastly, it's important to monitor Savara's ability to meet the closing conditions by July 1, 2024, as stated. While it’s common for such offerings to rely on customary closing conditions, any delays or issues could cause volatility in the stock price.

In the short-term, expect some fluctuation in Savara's stock price due to the dilution effect. In the long-term, if the company effectively utilizes this $100 million for its clinical trials and progresses positively, it could result in substantial gains.

The underwritten offering by Savara highlights a strategic move to secure funding in a highly competitive biopharmaceutical market. With $100 million raised, Savara is positioning itself to aggressively advance its clinical trials focused on rare respiratory diseases—a niche but potentially lucrative market.

From a market perspective, this offering shows Savara's intent to solidify its financial stance before any significant clinical milestones are announced. Given the backing from high-profile investors, this could indicate strong market confidence in the company's future prospects.

However, retail investors need to be cautious of market saturation. Biopharmaceutical companies often raise funds multiple times and this can lead to significant dilution of shares over time. Monitoring the company's burn rate and pipeline progress will be important in assessing the long-term sustainability and potential returns.

Overall, this funding round appears to be a positive strategic step in ensuring that Savara remains competitive in its niche market. If successfully executed, it could enhance the company’s market position and attract more investor interest.

LANGHORNE, Pa.--(BUSINESS WIRE)-- Savara Inc. (Nasdaq: SVRA), a clinical stage biopharmaceutical company focused on rare respiratory diseases, today announced the pricing of an underwritten offering of 26,246,720 shares of its common stock at a price of $3.81 per share before deducting underwriting discounts and commissions, for total gross proceeds of approximately $100.0 million. All of the securities to be sold in the offering are being sold by Savara. The offering included the following investors: Bain Capital Life Sciences, Farallon Capital Management, Frazier Life Sciences, Wellington Management, Nantahala Capital, TCGX and First Light Asset Management, among others. The offering is expected to close on July 1, 2024, subject to the satisfaction of customary closing conditions.

Jefferies, Piper Sandler, and Guggenheim Securities are acting as joint book-running managers for the offering. Oppenheimer & Co. is acting as the lead manager for the offering.

These securities were offered by Savara pursuant to its existing shelf registration statement (File No. 333-279274) filed with the Securities and Exchange Commission (SEC) on May 9, 2024 and declared effective on May 21, 2024. A prospectus supplement describing the terms of the offering will be filed with the SEC and will form a part of the effective registration statement. Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com, Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, by telephone at (800) 747-3924, or by email at prospectus@psc.com, or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, New York 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com. An electronic copy of the prospectus supplement and accompanying prospectus relating to the offering will be available on the SEC website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of offers to buy any securities of Savara, and shall not constitute an offer, solicitation, or sale of any security 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 Savara

Savara is a clinical stage biopharmaceutical company focused on rare respiratory diseases. Savara’s lead program, molgramostim nebulizer solution, is an inhaled granulocyte-macrophage colony-stimulating factor (GM-CSF) in Phase 3 development for autoimmune pulmonary alveolar proteinosis (aPAP). Molgramostim is delivered via an investigational eFlow® Nebulizer System (PARI Pharma GmbH) specifically developed for inhalation of a large molecule. Savara’s management team has significant experience in rare respiratory diseases and pulmonary medicine, identifying unmet needs, and effectively advancing product candidates to approval and commercialization.

Forward-Looking Statements

Savara cautions you that statements in this press release that are not a description of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words referencing future events or circumstances such as “expect,” “intend,” “plan,” “anticipate,” “believe,” and “will,” among others. Such statements include, but are not limited to, statements related to the offering, including the timing of the offering and size. Savara may not actually achieve any of the matters referred to in such forward-looking statements, and you should not place undue reliance on these forward-looking statements. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon Savara’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, stock market conditions, Savara’s ability to satisfy the conditions to closing in the underwriting agreement, Savara’s ability to complete the offering, the risks and uncertainties relating to the impact of widespread health concerns impacting healthcare providers or patients, disruptions or inefficiencies in the supply chain and geopolitical conditions on Savara’s business and operations, the outcome of Savara’s ongoing and planned clinical trials for Savara’s product candidate, the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources for Savara’s operations and to conduct or continue planned clinical development programs, the ability to obtain the necessary patient enrollment for Savara’s product candidate in a timely manner, the ability to successfully develop Savara’s product candidate, the risks associated with the process of developing, obtaining regulatory approval for and commercializing drug candidates such as molgramostim that are safe and effective for use as human therapeutics, and the timing and ability of Savara to raise additional capital as needed to fund continued operations. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. For a detailed description of Savara’s risks and uncertainties, you are encouraged to review Savara’s documents filed with the SEC including its recent filings on Form 8-K, Form 10-K and Form 10-Q. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Savara undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law.

Savara Inc. IR & PR

Anne Erickson (anne.erickson@savarapharma.com)

(512) 851-1366

Source: Savara Inc.

FAQ

What is the size of Savara's latest stock offering?

Savara announced an underwritten offering of 26,246,720 shares of its common stock at $3.81 per share, aiming to raise approximately $100.0 million.

When is Savara's stock offering expected to close?

The offering is expected to close on July 1, 2024, subject to customary closing conditions.

Who are the investors involved in Savara's stock offering?

Notable investors in the offering include Bain Capital Life Sciences, Farallon Capital Management, Frazier Life Sciences, Wellington Management, Nantahala Capital, TCGX, and First Light Asset Management.

What impact does Savara's new stock offering have on existing shareholders?

The issuance of 26,246,720 new shares will result in shareholder dilution.

Which financial institutions are managing Savara's stock offering?

Jefferies, Piper Sandler, and Guggenheim Securities are the joint book-running managers, with Oppenheimer & Co. as the lead manager for the offering.

Under what registration statement is Savara's stock offering being conducted?

The offering is conducted under Savara's existing shelf registration statement (File No. 333-279274) filed with the SEC on May 9, 2024, and declared effective on May 21, 2024.

Savara Inc.

NASDAQ:SVRA

SVRA Rankings

SVRA Latest News

SVRA Stock Data

804.09M
164.44M
5.63%
85.54%
4.47%
Pharmaceutical Preparation Manufacturing
Manufacturing
Link
United States of America
AUSTIN