Protara Announces Pricing of $75 Million Public Offering

Rhea-AI Summary

Protara Therapeutics (NASDAQ: TARA) priced an underwritten public offering of 13,043,479 common shares at $5.75 per share, with gross proceeds of approximately $75 million before fees and expenses. The underwriters have a 30-day option to purchase up to an additional 1,956,521 shares at the public offering price, less underwriting discounts and commissions.

The offering is expected to close on December 8, 2025, and all shares are being sold by Protara. Net proceeds are intended to fund clinical development of TARA-002, other clinical programs, working capital, and general corporate purposes. J.P. Morgan, TD Cowen, and Piper Sandler are joint book-running managers.

Positive

• Gross proceeds of approximately $75 million
• Proceeds earmarked to fund clinical development of TARA-002
• Underwriters granted a 30-day option for up to 1,956,521 additional shares
• Offering to be issued from an effective Form S-3 shelf registration

Negative

• Sale of 13,043,479 shares will dilute existing shareholders
• Net proceeds will be reduced by underwriting discounts, commissions, and offering expenses

Key Figures

Offering size $75 million Gross proceeds from underwritten public offering

Shares offered 13,043,479 shares Common stock in primary offering

Offer price $5.75 per share Public offering price for common stock

Underwriters’ option shares 1,956,521 shares 30-day option for additional common stock

Option period 30 days Underwriters’ option to purchase additional shares

Form type Form S-3 (File No. 333-275290) Effective registration statement used for this offering

Effective date November 14, 2023 Date Form S-3 was declared effective by SEC

Expected closing date December 8, 2025 Anticipated closing of the underwritten offering

Market Reality Check

$6.85 Last Close

Volume Volume 518,733 is below 20-day average 770,507 (relative volume 0.67x) ahead of the offering news. low

Technical Shares traded above the 200-day MA before this news: price 6.85 vs 200-day MA 3.96, and about 34.64% below the 52-week high.

Peers on Argus 2 Up 1 Down

Pre-news momentum data flagged mixed moves among biotech peers: BMEA and KALA appeared with gains around 8–10%, while IKT showed a decline near 6%. With sector moves not clearly aligned and TARA’s target direction marked as down, the reaction looked company-specific to this equity financing.

Common Catalyst Another peer, KALA, also announced an equity offering the same day, suggesting capital-raising activity among smaller biotech names.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 04	Equity offering plan	Negative	+0.7%	Announced proposed $75M underwritten offering to fund TARA-002 and other programs.
Dec 03	Clinical data update	Positive	+9.3%	Updated Phase 2 ADVANCED-2 data showed strong CR rates in NMIBC patients.
Dec 01	Conference preview	Neutral	-8.7%	Announced webcast and SUO presentation for upcoming ADVANCED-2 interim data.
Nov 19	Clinical trial interim	Positive	-0.6%	Reported positive interim STARBORN-1 results in pediatric lymphatic malformations.
Nov 18	Conference preview	Neutral	+21.2%	Planned webcast to review new STARBORN-1 interim data on Nov 19, 2025.

Pattern Detected

Recent news flow shows frequent divergences: shares often moved counter to the intuitive sentiment of clinical and financing updates, with only one clearly aligned reaction in the last five events.

Recent Company History

Over the last few weeks, Protara has combined active clinical progress with repeated use of equity financing. On Nov 18–19, the company highlighted and then updated positive interim STARBORN-1 data in pediatric lymphatic malformations. On Dec 1–3, focus shifted to ADVANCED-2 in NMIBC, including strong complete response rates and FDA feedback. On Dec 4, Protara then moved from proposing to formally pricing a $75 million offering, again targeting funding for TARA-002 and broader clinical programs.

Market Pulse Summary

This announcement details a fully underwritten public offering of 13,043,479 shares at $5.75, for expected gross proceeds of $75 million. The company plans to direct net proceeds toward clinical development of TARA-002 and other programs, as well as working capital. Compared with prior offerings, the structure and use of proceeds are consistent. Investors should track future updates on enrollment, additional trial data, and subsequent capital needs to understand how this financing supports the broader development roadmap.

Key Terms

underwritten public offering financial

"today announced the pricing of its underwritten public offering of 13,043,479 shares"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

gross proceeds financial

"The gross proceeds from the offering are expected to be approximately $75 million"

The total amount of cash a company receives from a financing event or sale before any fees, expenses, taxes or deductions are taken out. Investors watch gross proceeds because it shows the raw scale of new capital being raised—think of it as the paycheck amount before withholdings—which helps assess how much funding is available for operations, growth, debt payoff or how much shareholder dilution might occur once costs are removed.

underwriting discounts and commissions financial

"before deducting underwriting discounts and commissions and offering expenses"

Underwriting discounts and commissions are fees paid to financial institutions that help sell new securities to investors. They act like a commission for their role in connecting companies with buyers, often reducing the amount of money the issuing company raises. For investors, understanding these costs helps gauge how much of their investment is going toward the actual securities versus fees paid to middlemen.

shelf registration statement regulatory

"issued pursuant to an effective shelf registration statement on Form S-3"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

form s-3 regulatory

"shelf registration statement on Form S-3 (File No. 333-275290)"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

prospectus supplement regulatory

"The offering is being made only by means of a prospectus supplement and the accompanying prospectus."

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

u.s. securities and exchange commission regulatory

"declared effective on November 14, 2023 by the U.S. Securities and Exchange Commission"

The U.S. Securities and Exchange Commission is a government agency responsible for overseeing the stock market and protecting investors. It sets rules to ensure that companies share truthful information and that trading is fair, helping to maintain trust in the financial system. This oversight is important because it helps prevent fraud and ensures that investors can make informed decisions.

nasdaq financial

"Protara Therapeutics, Inc. (Nasdaq: TARA)"

The Nasdaq is a stock exchange where many companies' shares are bought and sold, functioning much like a marketplace for investments. It matters to investors because it provides a platform to buy and sell ownership stakes in companies, helping them track the value of those companies and make informed decisions. As one of the largest and most technology-focused markets, it also reflects trends and developments in the business world.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 04, 2025 (GLOBE NEWSWIRE) -- Protara Therapeutics, Inc. (Nasdaq: TARA) (“Protara”), a clinical-stage company developing transformative therapies for the treatment of cancer and rare diseases, today announced the pricing of its underwritten public offering of 13,043,479 shares of its common stock at a price to the public of $5.75 per share. In addition, Protara has granted the underwriters a 30-day option to purchase up to an additional 1,956,521 shares of common stock at the public offering price, less underwriting discounts and commissions. All shares in the offering are being sold by Protara. The gross proceeds from the offering are expected to be approximately $75 million before deducting underwriting discounts and commissions and offering expenses payable by Protara and excluding any exercise of the underwriters’ option to purchase additional shares. The offering is expected to close on December 8, 2025, subject to satisfaction of customary closing conditions. Protara intends to use the net proceeds received from the offering to fund the clinical development of TARA-002, as well as the development of other clinical programs. Protara may also use the net proceeds from the offering for working capital and other general corporate purposes.

J.P. Morgan, TD Cowen and Piper Sandler are acting as joint book-running managers. LifeSci Capital is acting as a lead manager of the offering. H.C. Wainwright & Co. is acting as a manager of the offering.

The shares of common stock will be issued pursuant to an effective shelf registration statement on Form S-3 (File No. 333-275290) that was declared effective on November 14, 2023 by the U.S. Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a prospectus supplement and the accompanying prospectus. A final prospectus supplement relating 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 final prospectus supplement and the accompanying prospectus relating to the offering, when available, may be obtained from the offices of J.P. Morgan Securities LLC, 270 Park Avenue, New York, New York 10017, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by email at TDManualrequest@broadridge.com; or Piper Sandler & Co., 350 North 5^th Street, Suite 1000, Minneapolis, Minnesota 55401, Attention: Prospectus Department, by telephone at (800) 747-3924, or by email at prospectus@psc.com.

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 an offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of such state or jurisdiction.

Forward-looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Protara may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “designed,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words or expressions referencing future events, conditions or circumstances that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such forward-looking statements include but are not limited to, statements regarding the timing, size and completion of the public offering as well as the expected use of proceeds related thereto are not guarantees of future performance or results and involve substantial risks and uncertainties. Actual results, developments and events may differ materially from those expressed or implied by such forward-looking statements. Factors that contribute to the uncertain nature of the forward-looking statements include: Protara’s ability to complete the offering on the proposed terms, or at all, and Protara’s expectations related to the use of proceeds from the offering. Additional important factors to be considered in connection with forward-looking statements, including additional risks and uncertainties, are described more fully under the caption “Risk Factors” and elsewhere in Protara’s filings and reports with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Protara undertakes no obligation to update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise, except as required by law.

Company Contact:
Justine O'Malley
Protara Therapeutics
Justine.OMalley@protaratx.com
646-817-2836

FAQ

How many shares and at what price did Protara (TARA) offer on December 5, 2025?

Protara offered 13,043,479 shares at $5.75 per share.

What are the expected gross proceeds from the Protara (TARA) offering and when will it close?

The offering is expected to raise approximately $75 million in gross proceeds and to close on December 8, 2025, subject to customary conditions.

How will Protara (TARA) use the net proceeds from the December 2025 offering?

Proceeds are intended to fund clinical development of TARA-002, other clinical programs, working capital, and general corporate purposes.

Is there an option to buy more shares in Protara's (TARA) December 2025 offering?

Yes; underwriters have a 30-day option to purchase up to 1,956,521 additional shares at the public offering price, less discounts and commissions.

Who are the joint book-running managers for Protara's (TARA) offering?

J.P. Morgan, TD Cowen, and Piper Sandler are acting as joint book-running managers.

Will the offering reduce Protara (TARA) shareholders' ownership?

Yes; because all offered shares are being sold by Protara, the transaction will dilute existing shareholders when shares are issued.