Tarsus Announces Proposed $100.0 Million Public Offering

Rhea-AI Summary

Tarsus Pharmaceuticals, Inc. announces a $100.0 million public offering of common stock to fund further development, with underwriters including Goldman Sachs and BofA Securities.

Financial Analyst

The public offering announcement by Tarsus Pharmaceuticals indicates a strategic move to raise capital, likely for advancing its product pipeline or expanding its market operations. The size of the offering, $100 million with an additional $15 million option for underwriters, is substantial, suggesting aggressive capital raising efforts. This influx of capital could be aimed at funding ongoing clinical trials, research and development, or potential acquisitions.

Investors should note that public offerings can dilute existing shares, potentially impacting share price. However, the decision to offer pre-funded warrants provides an alternative to direct share purchase, which can be appealing to certain investors. The involvement of high-profile financial institutions as joint book-running managers may indicate confidence in the offering's success, but market conditions will ultimately determine the uptake.

Market Research Analyst

In the context of the eye care industry, Tarsus Pharmaceuticals' focus on unmet needs suggests a strategic positioning to capture niche markets or introduce innovative treatments. The capital raised could enable Tarsus to accelerate the commercialization of their products. Market response to such offerings can serve as a barometer for the company's perceived potential and industry growth prospects.

Moreover, the timing and success of the offering may be influenced by broader market trends and investor sentiment towards the healthcare sector. It's crucial for stakeholders to monitor the final terms and actual size of the offering, as these will provide insights into institutional and retail investor appetite for Tarsus' stock.

Legal Expert

The registration statement's immediate effectiveness upon filing with the SEC indicates Tarsus has complied with necessary regulatory requirements, streamlining the offering process. The availability of a prospectus and its supplements will provide transparency, detailing the company's financial health and risks associated with the offering.

It is important for potential investors to understand that the offering's compliance with securities laws does not imply a recommendation of the stock. The legal framework ensures that all material information is disclosed, allowing for informed decision-making without endorsing the investment's merits.

IRVINE, Calif., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Tarsus Pharmaceuticals, Inc. (Nasdaq: TARS) (the “Company” or “Tarsus”), whose mission is to focus on unmet needs and apply proven science and new technology to revolutionize treatment for patients, starting with eye care, today announced the commencement of an underwritten public offering of $100.0 million of shares of its common stock or, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase shares of its common stock. Tarsus also intends to grant the underwriters a 30-day option to purchase up to an additional $15.0 million of shares of its common stock offered in the proposed offering. All securities in the proposed offering are to be sold by Tarsus. 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 as to the actual size or terms of the offering.

Goldman Sachs & Co. LLC, BofA Securities, Guggenheim Securities, LLC and Oppenheimer & Co. are acting as joint book-running managers for the offering.

A registration statement relating to the securities to be sold in the proposed offering was filed with the U.S. Securities and Exchange Commission (SEC) on February 29, 2024 and became automatically effective upon filing. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov. The offering will be made only by means of prospectus. A preliminary prospectus supplement related to the offering (including the accompanying prospectus) will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus may also be obtained, when available, from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, or by email at dg.prospectus_requests@bofa.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; or Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, New York 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com.

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

About Tarsus Pharmaceuticals, Inc.
Tarsus Pharmaceuticals, Inc. applies proven science and new technology to revolutionize treatment for patients, starting with eye care. Tarsus is advancing its pipeline to address several diseases with high unmet need across a range of therapeutic categories, including eye care, dermatology and infectious disease prevention. XDEMVY® (lotilaner ophthalmic solution) 0.25% is FDA approved in the United States for the treatment of Demodex blepharitis. Tarsus is also developing TP-03 as an investigational therapy for the treatment of Meibomian Gland Disease, TP-04 for the treatment of rosacea and TP-05 as an oral tablet for the prevention of Lyme disease, all of which are in Phase 2.

Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” The words, without limitation, “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors; including, but not limited to, risks and uncertainties related to market conditions, and satisfaction of customary closing conditions related to the proposed public offering and the grant to the underwriters of an option to purchase additional shares. Further, there are other risks and uncertainties that could cause actual results to differ from those set forth in the forward-looking statement and they are detailed from time to time in the reports Tarsus files with the Securities and Exchange Commission, including Tarsus’ Form 10-K for the year ended December 31, 2023 filed on February 27, 2024 with the SEC, copies of which are posted on its website and are available from Tarsus without charge. However, new risk factors and uncertainties may emerge from time to time, and it is not possible to predict all risk factors and uncertainties. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statements contained in this press release are based on the current expectations of Tarsus’ management team and speak only as of the date hereof, and Tarsus specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts:
Media Contact:
Adrienne Kemp
Sr. Director, Corporate Communications
(949) 922-0801
akemp@tarsusrx.com

Investor Contact:
David Nakasone
Head of Investor Relations
(949) 620-3223
DNakasone@tarsusrx.com

What is Tarsus Pharmaceuticals, Inc. announcing?

Tarsus Pharmaceuticals, Inc. is announcing the commencement of a $100.0 million public offering of shares of its common stock.

How much money is involved in the public offering?

The public offering involves $100.0 million of shares of Tarsus Pharmaceuticals, Inc.'s common stock.

Who are the underwriters for the offering?

The underwriters for the offering include Goldman Sachs & Co. LLC, BofA Securities, Guggenheim Securities, LLC, and Oppenheimer & Co.

What is the purpose of the public offering?

The purpose of the public offering is to raise funds for further development and expansion of Tarsus Pharmaceuticals, Inc.

Where can the registration statement related to the offering be accessed?

The registration statement related to the offering can be accessed through the SEC's website at www.sec.gov.