Assembly Biosciences (NASDAQ:ASMB), Inc., a biopharmaceutical company, has entered into a sales agreement with Jefferies LLC to initiate an at-the-market equity offering program. The agreement, effective as of Thursday, allows for the sale of Assembly Biosciences' common stock from time to time through Jefferies acting as the sales agent.
The arrangement permits the company to sell shares according to set parameters, including the number of shares, the timing of sales, and a minimum price threshold. Jefferies may transact in various ways, including privately negotiated transactions, block trades, or through The Nasdaq Global Market, where the company's stock is listed under the ticker NASDAQ:ASMB.
Jefferies is to receive compensation up to 3% of the gross proceeds from any shares sold under this agreement. However, both parties have the discretion to suspend sales or terminate the agreement at any time.
The shares offered will be issued under Assembly Biosciences' shelf registration statement, which was declared effective by the Securities and Exchange Commission on April 14, 2023. The company has supplemented this with a prospectus supplement filed on the same day as the sales agreement.
This move by Assembly Biosciences provides a flexible mechanism to raise capital, allowing the company to finance its operations and invest in its pharmaceutical development programs as needed. The company's decision to enter into this agreement is based on a press release statement.
In other recent news, Assembly Biosciences has made significant strides in the development of its recurrent genital herpes drug candidate, ABI-5366. The company reported positive interim results from the Phase 1a study, indicating a favorable safety profile and potential for once-weekly or once-monthly dosing schedules. The study's data supports the advancement of ABI-5366 to the Phase 1b portion, which is currently in the patient screening process.
Investment banking firms have offered their analysis on these developments. H.C. Wainwright maintained a neutral stance on Assembly Biosciences, while Mizuho (NYSE:MFG) Securities reiterated an Outperform rating, emphasizing the drug's long-acting profile as a significant advantage for patient convenience. Meanwhile, Jefferies upgraded its rating from Hold to Buy, reflecting a positive outlook on the company's upcoming clinical data.
The Phase 1b study will further assess the drug's antiviral activity in individuals with recurrent genital herpes. The interim results from this phase are anticipated in the first half of 2025. As these are recent developments, investors are expected to closely monitor the progress of the Phase 1b study and the potential impact on Assembly Biosciences' future prospects.
InvestingPro Insights
Assembly Biosciences' decision to initiate an at-the-market equity offering program aligns with its current financial position and market performance. According to InvestingPro data, the company has a market capitalization of $106.67 million USD, reflecting its current valuation in the biotech sector.
Two relevant InvestingPro Tips shed light on the company's financial strategy. Firstly, Assembly Biosciences "holds more cash than debt on its balance sheet," which suggests a solid financial foundation as it seeks to raise additional capital. Secondly, the company is "trading at a low revenue valuation multiple," which could make its stock offering attractive to potential investors.
The company's recent market performance has been strong, with a 31.93% price total return over the past three months and a significant 69.19% return year-to-date. This positive momentum may support the company's efforts to raise capital through the new equity offering program.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips that could provide further insights into Assembly Biosciences' financial health and market position.
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