BOSTON - Centessa Pharmaceuticals plc (NASDAQ:CNTA), a clinical-stage pharmaceutical company, announced today that it has initiated a public offering of American Depositary Shares (ADSs) valued at $100 million. The company, which focuses on the discovery and development of transformative medicines for patients, is offering all ADSs in this transaction.
The offering also includes an option for underwriters to purchase up to an additional $15 million of ADSs within a 30-day period. While the offering is contingent upon market conditions and other factors, there is no guarantee of when or if the offering will be finalized, nor of its definitive size or conditions.
Goldman Sachs and Leerink Partners are leading the offering as joint book-running managers. Other book-running managers for the offering include Evercore ISI, Guggenheim Securities, and BMO Capital Markets.
The securities are being offered under a registration statement on Form S-3, which was filed and declared effective by the Securities and Exchange Commission (SEC) on July 12, 2022. Prospective investors can access the preliminary prospectus supplement and accompanying prospectus on the SEC's website or obtain copies from the book-running managers.
Centessa's portfolio includes advanced programs in hemophilia, a treatment for narcolepsy and sleep-wake disorders, and an immuno-oncology program with its proprietary LockBody® technology platform. The company operates with the aim of establishing new standards of care through its programs.
The completion of this offering is subject to various risks, including market conditions and customary closing conditions. Centessa has cautioned that forward-looking statements in the press release are based on current expectations and projections, which are subject to significant risks and uncertainties.
This news is based on a press release statement from Centessa Pharmaceuticals plc.
InvestingPro Insights
In light of Centessa Pharmaceuticals plc's (NASDAQ:CNTA) recent announcement regarding its public offering of American Depositary Shares, insights from InvestingPro reveal a mixed financial landscape for the company.
With a market capitalization of $1.06 billion, Centessa's valuation metrics suggest a company in a transformative phase. The company's price-to-book ratio as of the last twelve months ending Q4 2023 stands at 3.99, indicating that investors are willing to pay a premium for its book value, potentially due to the promising nature of its pharmaceutical developments.
Still, Centessa's profitability appears challenged, as reflected by its negative P/E ratio of -6.46 for the same period. This aligns with one of the InvestingPro Tips that analysts do not anticipate the company will be profitable this year. Despite this, the company's stock has experienced a significant return of 101.21% over the past year, showcasing investor confidence in its long-term prospects.
Another noteworthy InvestingPro Tip is that Centessa holds more cash than debt on its balance sheet, which could provide a buffer in maintaining operations and funding research despite the current cash burn rate. This is particularly relevant as the company seeks additional funds through its public offering.
Investors interested in a deeper dive into Centessa Pharmaceuticals can find additional insights and tips on InvestingPro. There are 12 more InvestingPro Tips available, which could be particularly valuable for those considering this investment opportunity. To access these tips and for a comprehensive financial analysis, visit: https://www.investing.com/pro/CNTA. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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