NEW YORK - Rezolute , Inc. (NASDAQ:RZLT), a biopharmaceutical company specializing in treatments for rare diseases, today announced the launch of an underwritten public offering of its common stock. The company may also issue pre-funded warrants as an alternative to shares. Moreover, underwriters will have a 30-day option to purchase up to 15% more shares than the total offered in the initial public offering (IPO).
The offering is contingent on market conditions and there are no guarantees regarding the completion or the terms of the offering. Rezolute will be the sole provider of shares for the offering. Investment banks Jefferies and Cantor are managing the book-running process.
Previously, on November 29, 2023, the Securities and Exchange Commission (SEC) declared effective a shelf registration statement related to these securities. Details of the offering will be available in a prospectus supplement and accompanying prospectus, forming part of the registration statement. Interested parties can access these documents, once available, on the SEC's website or directly from Jefferies or Cantor.
This press release does not serve as an offer to sell or a solicitation of an offer to buy securities. Sales will not be conducted in jurisdictions where such transactions are unauthorized prior to registration or qualification under local securities laws.
Rezolute focuses on developing antibody therapy RZ358 for treating hyperinsulinism (HI), a condition that causes hypoglycemia. The treatment aims to benefit patients with congenital and tumor-related HI and has shown positive results in clinical trials and practical use.
The company's announcement includes forward-looking statements regarding the offering, which involve risks and uncertainties that could cause actual results to differ materially. These include market conditions and other factors detailed in the prospectus supplement and the company's SEC filings.
This news article is based on a press release statement from Rezolute, Inc.
In other recent news, biopharmaceutical company Rezolute, Inc. has been making strides with its key drug candidates, RZ402 and RZ358. Investment firm Craig-Hallum initiated coverage on Rezolute, assigning a Buy rating and a price target of $14.00, based on the potential of Rezolute's lead drug candidate, RZ358, which is being developed as a treatment for congenital hyperinsulinism. Concurrently, Jones Trading also initiated coverage on Rezolute with a Buy rating and a price target of $10.00.
Rezolute's financial position appears robust, with a cash reserve of approximately $81.6 million, which analysts believe should sustain the company's operations through critical upcoming clinical milestones. The company's lead candidate, RZ402, for the treatment of diabetic macular edema (DME), has shown promising results in Phase II trials.
Rezolute is poised for significant events in the near future, with the Phase 3 sunRIZE trial of RZ358 in CHI progressing outside the United States and completion of enrollment expected by the end of 2024. Top-line results for this trial are anticipated by mid-2025. These developments highlight the company's ongoing commitment to innovation and clinical excellence.
InvestingPro Insights
In light of Rezolute, Inc.'s (NASDAQ:RZLT) announcement of its underwritten public offering, investors may find the following data from InvestingPro valuable for making informed decisions:
- The company's market capitalization stands at a modest $205.89 million, indicating a smaller, potentially more volatile stock within the biopharmaceutical sector.
- With a negative P/E ratio of -4.53 and an adjusted P/E ratio for the last twelve months as of Q3 2024 at -3.56, Rezolute is currently unprofitable, which is a common characteristic among growth-oriented biotech companies investing heavily in research and development.
- Rezolute's price has experienced a significant uptick, with a 171.29% return over the last year and an impressive 502.0% return over the last six months, reflecting investor optimism about the company's future prospects.
Among the InvestingPro Tips that could be pertinent to potential investors:
- The company holds more cash than debt on its balance sheet, which could provide some financial flexibility in the short-term, especially in the context of its recent public offering.
- Despite strong returns in recent months, analysts have revised their earnings downwards for the upcoming period, indicating potential concerns about the company's near-term profitability.
With these insights, individuals interested in the evolving story of Rezolute, Inc. may consider further analysis. For a deeper dive into Rezolute's financials and additional InvestingPro Tips, including the company's cash burn rate and liquidity, visit InvestingPro. There are 12 more tips available to guide your investment strategy. To access these tips and more detailed analytics, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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