© Reuters.
CAMBRIDGE, Mass. & SALISBURY, England – KalVista Pharmaceuticals, Inc. (NASDAQ: NASDAQ:), a biopharmaceutical company, has announced the pricing of its public offering. The company is offering over 7 million shares of its common stock at $15.25 each and pre-funded warrants for approximately 3.5 million shares. The expected gross proceeds are around $160.1 million, excluding underwriting discounts and other expenses.
The pre-funded warrants, immediately exercisable, allow investors to purchase shares at a nominal price of $0.001. KalVista also granted underwriters a 30-day option to buy up to an additional 1.575 million shares at the offering price minus discounts and commissions. The offering is slated to close around Monday, February 20, 2024, subject to customary closing conditions.
Jefferies, Leerink Partners, Stifel, and Cantor are the joint book-running managers. Needham & Company is serving as financial advisor to KalVista.
The company intends to use the net proceeds to advance the clinical development of sebetralstat, a treatment candidate for hereditary angioedema (HAE), and for its oral Factor XIIa inhibitor program. Funds will also cover potential commercialization post-approval and general corporate purposes.
This offering follows KalVista’s positive phase 3 trial results for sebetralstat, with a new drug application expected to be submitted to the FDA in the first half of 2024. Further filings in Europe and Japan are anticipated later in the year.
KalVista’s focus is on oral protease inhibitors for diseases with significant unmet needs.
The information in this article is based on a press release.
InvestingPro Insights
In light of KalVista Pharmaceuticals’ recent public offering announcement, InvestingPro data reveals a market capitalization of $497.65 million, indicating a notable presence in the biopharmaceutical industry. Despite the challenges, the company’s strong performance is reflected in the 86.29% return over the past year and an impressive 87.26% return over the last three months. This momentum could be a positive signal for investors eyeing the company’s growth trajectory.
On the financial health side, InvestingPro tips suggest KalVista holds more cash than debt, which is a reassuring sign for investors concerned about the company’s ability to manage its finances post-offering. Additionally, KalVista’s liquid assets exceed its short-term obligations, further underlining its financial stability in the near term.
However, potential investors should consider that the company is not expected to be profitable this year, and it has been quickly burning through cash. These factors, along with weak gross profit margins and a lack of dividend payments, could be critical considerations when evaluating the investment’s potential risks and rewards.
For those looking to delve deeper into KalVista’s financials and future prospects, InvestingPro offers additional insights. By visiting InvestingPro, investors can access a total of 10 InvestingPro Tips that could help in making a more informed decision. As an exclusive offer, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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