CARSON CITY, Nev. - BioVie Inc. (NASDAQ: BIVI), a clinical-stage biopharmaceutical company, has announced a registered direct offering of approximately 2.67 million shares of common stock, each priced at $2.25. In a concurrent private placement, the company will also issue warrants to purchase an equivalent number of shares. The total gross proceeds from this offering are expected to reach about $6 million, before accounting for placement agent fees and other offering expenses.
The warrants, which are set to be exercisable six months following their issuance date, have a five-year term and an exercise price of $2.12 per share. The offering and private placement are scheduled to close around October 24, 2024, subject to standard closing conditions. ThinkEquity is serving as the sole placement agent for the transaction.
BioVie's intent with the net proceeds is to bolster its working capital and support general corporate purposes. The shares and warrants are being offered directly by BioVie in accordance with a shelf registration statement previously filed with and declared effective by the U.S. Securities and Exchange Commission (SEC) on August 28, 2023.
The company specializes in developing drug therapies aimed at treating chronic conditions such as liver disease and neurological disorders, including Alzheimer's disease and Parkinson’s disease. Its drug candidate for neurodegenerative diseases, bezisterim, targets neuroinflammation and insulin resistance, both of which are implicated in these disorders. For advanced liver disease, BioVie's orphan drug candidate BIV201 is under assessment for Phase 3 clinical testing, following FDA guidance, for its potential to reduce complications in patients with liver cirrhosis and ascites.
The securities in this offering are being sold pursuant to a prospectus available on the SEC's website, and interested parties can obtain copies from ThinkEquity's New York office. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, and sales will not be made in jurisdictions where such an offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of such state or jurisdiction.
The information in this article is based on a press release statement from BioVie Inc.
In other recent news, BioVie Inc. has disclosed a registered direct offering aiming to raise approximately $6.7 million through the sale of common stock and warrants, with ThinkEquity serving as the sole placement agent. The company has also secured patents for its novel liquid formulation of terlipressin in Japan, the United States, India, and Chile, which is expected to improve patient treatment, particularly in home care settings.
BioVie has also received approval from the U.S. Army Medical Research and Development Command's Office of Human Research Oversight to proceed with a Phase 2 clinical trial of bezisterim, an investigational drug for the treatment of neurological symptoms associated with long COVID. This approval allows the company to access an additional $12.6 million in grant funding from the U.S. Department of Defense.
Furthermore, BioVie has reported the resignation of director Steve Gorlin and has regained compliance with Nasdaq's minimum bid price requirement, following a 1-for-10 reverse stock split of its Class A common stock. The company has also presented new clinical data on bezisterim at the 11th Aging Research and Drug Discovery (NASDAQ:WBD) Meeting, indicating its potential influence on the biological aging process and chronic inflammation related to aging-related diseases. These are all recent developments in BioVie's ongoing commitment to pharmaceutical innovation.
InvestingPro Insights
BioVie Inc.'s recent registered direct offering comes at a time when the company's financial metrics and market performance present a mixed picture. According to InvestingPro data, BioVie's market capitalization stands at $25.06 million, reflecting its status as a small-cap biopharmaceutical company. This relatively modest valuation aligns with the company's current developmental stage and its focus on advancing drug therapies for chronic conditions.
InvestingPro Tips highlight that BioVie holds more cash than debt on its balance sheet, which could be seen as a positive factor in light of the recent $6 million offering. This cash position may provide some financial flexibility as the company pursues its clinical development programs. Additionally, the tip indicating that liquid assets exceed short-term obligations suggests a degree of financial stability in the near term.
However, investors should note that BioVie is not currently profitable, with a negative P/E ratio of -0.81 for the last twelve months as of Q4 2024. This is consistent with the InvestingPro Tip stating that analysts do not anticipate the company will be profitable this year. The company's operating income stands at -$32.18 million, underscoring the substantial costs associated with drug development and clinical trials.
Despite these challenges, BioVie has shown significant short-term price momentum. The stock has delivered a remarkable 197.35% return over the past week and a 20% return over the last month. This recent surge in stock price could be attributed to investor optimism surrounding the company's drug pipeline or other positive developments. However, it's important to note that the stock has experienced a substantial decline of 89.69% over the past year, indicating high volatility and potential risks.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of BioVie's financial health and market position. There are 11 additional InvestingPro Tips available for BioVie, which could offer valuable context for those considering an investment in this clinical-stage biopharmaceutical company.
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