Spyre Therapeutics Announces Pricing of $200 Million Public Offering of Common Stock

Rhea-AI Summary

Spyre Therapeutics (NASDAQ: SYRE) has priced its public offering of 7,275,000 common stock shares at $27.50 per share, expecting to raise $200.0 million in gross proceeds. The clinical-stage biotech company, focused on IBD treatments, has granted underwriters a 30-day option to purchase up to additional 1,091,250 shares. The offering, managed by Jefferies, Goldman Sachs, Evercore Group, and Guggenheim Securities, is expected to close around November 20, 2024.

Positive

• Expected to raise $200.0 million in gross proceeds to fund operations
• Strong underwriting support from major financial institutions

Negative

• Potential dilution for existing shareholders through issuance of 7,275,000 new shares
• Additional dilution possible if underwriters exercise option for 1,091,250 extra shares

Insights

Financial Analyst

This $200 million public offering represents a significant capital raise for Spyre Therapeutics at $27.50 per share. The pricing shows strong institutional interest, with top-tier underwriters like Jefferies and Goldman Sachs leading the offering. The additional 15% overallotment option could potentially bring in another $30 million if exercised.

The timing aligns with the broader biotech sector's recovery in capital markets and the successful pricing suggests investor confidence in Spyre's IBD pipeline. The fresh capital should substantially strengthen their balance sheet, providing runway for clinical development programs. However, the offering will dilute existing shareholders by approximately 7.3% (potentially up to 8.4% if overallotment is exercised).

WALTHAM, Mass., Nov. 18, 2024 /PRNewswire/ -- Spyre Therapeutics, Inc. ("Spyre" or the "Company") (NASDAQ: SYRE), a clinical-stage biotechnology company utilizing best-in-class antibody engineering, rational therapeutic combinations, and precision medicine approaches to target improved efficacy and convenience in the treatment of inflammatory bowel disease ("IBD"), today announced the pricing of its previously announced underwritten public offering of 7,275,000 shares of its common stock at a price to the public of $27.50 per share. The aggregate gross proceeds to the Company from this offering are expected to be $200.0 million, before deducting underwriting discounts and commissions and other offering expenses. In addition, the Company has granted the underwriters of the offering an option for a period of 30 days to purchase up to an additional 1,091,250 shares of the Company's common stock at the public offering price, less the underwriting discount.

The offering is expected to close on or about November 20, 2024, subject to satisfaction of customary closing conditions. Jefferies LLC, Goldman Sachs & Co. LLC, Evercore Group L.L.C., and Guggenheim Securities, LLC are acting as the joint book-running managers for the offering. LifeSci Capital LLC is acting as lead manager for the proposed offering.

A registration statement on Form S-3 (File No. 333-281975) relating to these securities has been filed with the Securities and Exchange Commission (the "SEC") and became effective on September 18, 2024. This offering is being made solely by means of a prospectus supplement and accompanying prospectus. A preliminary prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC's website located at http://www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus related to the offering may be obtained from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388 or by email at Prospectus_Department@Jefferies.com; Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by email at Prospectus-ny@ny.email.gs.com; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com; and Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, or by telephone at (212) 518-9544 or by email at GSEquityProspectusDelivery@guggenheimpartners.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 registration or qualification under the securities laws of any such state or jurisdiction.

About Spyre Therapeutics

Spyre Therapeutics is a biotechnology company that aims to create the next-generation of inflammatory bowel disease (IBD) products by combining best-in-class antibody engineering, rational therapeutic combinations, and precision medicine approaches. Spyre's pipeline includes investigational extended half-life antibodies targeting α4β7, TL1A, and IL-23. 

Safe Harbor / Forward Looking Statements

This press release contains "forward-looking" statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical fact are forward-looking statements. These forward-looking statements include statements regarding Spyre's expectations regarding the consummation of the offering and the satisfaction of customary closing conditions with respect to the offering. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "predict," "target," "intend," "could," "would," "should," "project," "plan," "expect," the negatives of these terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including the anticipated timing of the offering, market conditions and satisfaction of customary closing conditions related to the offering, the expected or potential impact of macroeconomic conditions, including inflationary pressures, rising interest rates, general economic slowdown or a recession, changes in monetary policy, volatile market conditions, financial institution instability, as well as geopolitical instability, including the ongoing military conflict in Ukraine, conflict in Israel and surrounding areas, and geopolitical tensions in China on the Company's operations, the potential impacts of the BIOSECURE Act bill if passed into law and those risks described in the Company's most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, as well as in other filings and reports that the Company makes from time to time with the SEC. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for the Company's management to predict all risks, nor can the Company assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements it may make. In light of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. The Company undertakes no obligation to update publicly any forward-looking statement for any reason after the date of this press release to conform these statements to actual results, to reflect changes in the Company's expectations, or otherwise, except as required by law.

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SOURCE Spyre Therapeutics, Inc.

FAQ

What is the price per share for Spyre Therapeutics (SYRE) public offering in November 2024?

Spyre Therapeutics priced its public offering at $27.50 per share.

How many shares is Spyre Therapeutics (SYRE) offering in its November 2024 public offering?

Spyre Therapeutics is offering 7,275,000 shares of common stock, with an option for underwriters to purchase an additional 1,091,250 shares.

How much money does Spyre Therapeutics (SYRE) expect to raise from its November 2024 offering?

Spyre Therapeutics expects to raise $200.0 million in gross proceeds before deducting underwriting discounts and other offering expenses.

When is Spyre Therapeutics (SYRE) public offering expected to close?

The offering is expected to close on or about November 20, 2024, subject to customary closing conditions.