NEW HAVEN, Conn. - Biohaven Ltd. (NYSE: BHVN), a biopharmaceutical company engaged in the development of therapies for rare and common diseases, has announced an underwritten public offering of its common shares. The company has priced the offering of 5,263,158 common shares at $47.50 each, with the potential for gross proceeds to reach approximately $250 million before fees and expenses. This offering is expected to close on October 2, 2024, contingent on customary closing conditions.
The underwriters have also been given a 30-day option to purchase up to an additional 789,473 common shares at the public offering price, minus underwriting discounts and commissions. Biohaven aims to utilize the net proceeds from this offering for general corporate purposes.
J.P. Morgan, Morgan Stanley, Jefferies, and TD Cowen are serving as the joint lead book-running managers for the offering. The shares are being offered through a prospectus supplement and accompanying prospectus, which can be obtained from the aforementioned financial institutions.
The issuance of shares will be conducted in accordance with an effective shelf registration statement on Form S-3 filed with the SEC, which can be accessed via the SEC's website.
Biohaven's announcement included forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those projected. The company has cautioned investors that the statements concerning the expected closing of the offering and the intended use of the proceeds are not guarantees of future performance.
The information in this article is based on a press release statement from Biohaven Ltd.
In other recent news, Biohaven Ltd. has initiated a public offering of its common shares valued at $250 million. J.P. Morgan and Morgan Stanley are managing the offering, which is subject to market conditions. Concurrently, Biohaven has started a Phase 2 trial for a new migraine treatment, BHV-2100, following favorable safety and tolerability results in Phase 1 trials.
The company's drug troriluzole has also shown promising results in clinical trials for Spinocerebellar Ataxia (SCA), potentially slowing disease progression by 50-70%. This progress was acknowledged by analyst firms such as Leerink Partners, H.C. Wainwright, BofA Securities, and RBC Capital, which maintained positive ratings and increased their price targets for Biohaven.
Additionally, Biohaven plans to file for approval for its lead candidate BHV-1300 after receiving FDA approval for Multiple Ascending Dose studies in Rheumatoid Arthritis patients. Analysts from firms such as BTIG, Piper Sandler, Jefferies, and Bernstein SocGen Group have expressed confidence in Biohaven's prospects with various positive ratings. These are recent developments in Biohaven's journey towards potentially introducing effective treatment options for conditions currently lacking approved therapies.
InvestingPro Insights
As Biohaven Ltd. (NYSE: BHVN) moves forward with its public offering, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, Biohaven's market capitalization stands at $4.72 billion, reflecting significant investor interest in the company's potential.
The company's stock has shown remarkable performance, with a 92.12% total return over the past year and a 26.83% return in the last month alone. This strong momentum aligns with the company's decision to raise capital through a public offering, potentially capitalizing on investor enthusiasm.
However, it's important to note that Biohaven is not currently profitable, with a negative P/E ratio of -6.19 for the last twelve months as of Q2 2024. This underscores the company's focus on development and growth rather than immediate profitability, which is common in the biopharmaceutical sector.
InvestingPro Tips highlight that Biohaven "holds more cash than debt on its balance sheet" and "liquid assets exceed short-term obligations." These factors could provide reassurance to potential investors in the public offering about the company's financial stability.
For those seeking a deeper understanding of Biohaven's financial position and prospects, InvestingPro offers 15 additional tips, providing a comprehensive view of the company's strengths and challenges in the current market.
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