SAN DIEGO - Capricor Therapeutics (NASDAQ: NASDAQ:CAPR), a biotechnology firm focused on developing treatments for rare diseases, has announced an underwritten public offering of 4,412,000 shares of its common stock priced at $17.00 each. The company has also provided the underwriters a 30-day option to purchase up to an additional 661,800 shares at the public offering price, minus underwriting discounts and commissions.
The transaction is anticipated to conclude on October 18, 2024, contingent upon customary closing conditions. Capricor expects to raise roughly $75 million in gross proceeds from the offering, before underwriting discounts, commissions, and estimated offering expenses are taken into account, and assuming the underwriters' option is not exercised.
Piper Sandler & Co. and Oppenheimer & Co. Inc. are serving as joint book-running managers for the offering. Capricor intends to use the net proceeds for the continued development of its product candidates, manufacturing, working capital, and general corporate purposes.
The offering comes after an effective shelf registration statement was filed with the Securities and Exchange Commission (SEC) on June 14, 2024, and declared effective on October 16, 2024. The offering is made through a prospectus and related prospectus supplement, with a preliminary prospectus supplement filed with the SEC on October 16, 2024. The final prospectus supplement will be filed with the SEC and available on their website.
Capricor is advancing its lead product candidate, deramiocel (CAP-1002), an allogeneic cardiac-derived cell therapy, through Phase 3 clinical development for the treatment of Duchenne muscular dystrophy. Additionally, the company is exploring the potential of its exosome technology with its proprietary StealthX™ platform in preclinical development for various diseases.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, and there will be no sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information in this article is based on a press release statement.
In other recent news, biotechnology firm Capricor Therapeutics has announced significant strides in its operations. The company is preparing to submit a Biologics License Application (BLA) for deramiocel, a treatment for cardiomyopathy in Duchenne muscular dystrophy (DMD) patients. This submission process is expected to conclude by the end of the year. Additionally, Capricor is planning a merger of cohorts from the ongoing Phase 3 HOPE-3 trial for a post-approval study.
The company's StealthX™ exosome-based multivalent vaccine for SARS-CoV-2 prevention has been selected for Project NextGen, a U.S. Department of Health and Human Services initiative. Capricor raised approximately $15.0 million through a private placement of common stock to Nippon Shinyaku and generated gross proceeds of approximately $53.9 million from selling all available shares under its at-the-market program. Despite reporting a net loss of approximately $11 million for Q2 2024, the company maintains a strong cash position, supported by these financial agreements.
Analysts from Oppenheimer, H.C. Wainwright, and Maxim Group have maintained their positive ratings for Capricor, reflecting optimism surrounding the company's recent developments. These advancements underscore the company's commitment to advancing its treatment options and solidifying its financial position.
InvestingPro Insights
Capricor Therapeutics' recent public offering comes at a time of significant market momentum for the company. According to InvestingPro data, CAPR has seen an impressive 303.74% price return over the past month and a staggering 622.18% return over the last year. This strong performance aligns with the company's decision to raise capital through a public offering, potentially capitalizing on investor enthusiasm.
However, investors should note that CAPR's financial health presents a mixed picture. An InvestingPro Tip indicates that the company is not profitable over the last twelve months, with a negative gross profit margin of -37.73% for the same period. This underscores the importance of the capital raise for Capricor's ongoing research and development efforts, particularly for its lead product candidate, deramiocel.
Another relevant InvestingPro Tip reveals that CAPR operates with a moderate level of debt, which could be viewed positively in the context of a biotechnology company investing heavily in product development. The additional capital from the public offering may help Capricor maintain this balanced approach to financing its operations.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for CAPR, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.