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Provention prices stock offering at USD 40mn
Posted on Thursday, 19 September 2019 13:21
Provention Bio, whose shares popped in June after the publication of data indicating an experimental medicine appeared to delay the onset of type 1 diabetes (T1D), is raising USD 40.00 million via a public offering. In a statement released after the bell rang yesterday, the New Jersey-based clinical-stage biopharmaceutical company announced it would sell 5.00 million shares at USD 8.00 apiece. Provention has also granted its underwriters, which include SVB Leerink and Cantor Fitzgerald as joint bookrunning managers, with an overallotment option for an additional 2.50 million scrips. Separately, the company has entered into a subscription agreement with Amgen regarding a private placement worth USD 20.00 million – comprising the issue of 2.50 million stocks at USD 8.00 each. Proceeds from both fundraisers will be used for general corporate purposes, including financing the advancement of its product candidates. Shares in the drug company closed at USD 9.36 yesterday to give a market capitalisation of USD 380.00 million. Provention wants to in-licence, transform and develop clinical-stage, or nearly clinical-stage, candidates targeting the high morbidity, mortality and escalating costs of autoimmune and inflammatory diseases, including: celiac disease, T1D, Crohn’s disease and lupus. The group’s portfolio includes PRV-031, which the US Food and Drug Administration has designated an orphan drug for the treatment of newly-diagnosed T1D. It has also been granted breakthrough description for the prevention or delay of clinical T1D in individuals at risk of developing the disease. Zephyr, the M&A database published by Bureau van Dijk, shows 113 capital increases targeting the US’s pharmaceutical, biotechnology and life sciences sector have been announced in 2019 to date. Provention’s cash call will be joint 46th alongside the likes of XBiotech, Inhibrx and Palatin Technologies. © Zephus Ltd