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Avrobio seeks cash to fund current programmes
Posted on Thursday, 13 February 2020 11:41
Avrobio is raising USD 100.00 million in the stock market to fund current programmes, external and internal manufacturing and process development activities.
The Massachusetts-based clinical-stage gene therapy company said it is selling 4.35 million new shares at USD 23.00 apiece and has provided a 30-day overallotment option for a further 652,500 stocks.
Morgan Stanley, Cowen, Wells Fargo Securities and Guggenheim Securities are joint bookrunning managers, with Wedbush PacGrow and Nomura co-managers, on the offering due to close on 18th February.
In addition to funding current programmes in cystinosis and the Fabry, Gaucher and Pompe diseases, money raised will also support research and development related to clinical and pre-clinical activities, which includes the cost of personnel.
Avrobio had cash and equivalents of USD 187.00 million at 31st December 2019, as compared to USD 206.40 million at 30th September 2019.
The company had a net tangible book value of USD 206.80 million, or USD 6.53 per share of common stock, as of 30th September 2019.
Avrobio is focused on developing potentially curative ex vivo lentiviral-based gene treatments for rare diseases following a single dose regimen.
The company’s initial focus is on a group of rare genetic diseases referred to as lysosomal diseases, which today are primarily managed with enzyme replacement therapies, or ERTs.
It believes this field has significant unmet needs and represents large market opportunities, with USD 4.00 billion in worldwide net sales in 2018.
Zephyr, the M&A database published by Bureau van Dijk, shows 111 capital increases by companies operating in the pharmaceutical, biotechnology and life sciences sectors have been announced in 2020 to date.
The largest by value features Sino Biopharmaceutical issuing convertible bonds worth USD 831.98 million.
Avrobio’s cash call will be the 16th biggest of the year so far.
© Zephus Ltd