BOSTON and LONDON - Centessa Pharmaceuticals plc (NASDAQ:CNTA), a clinical-stage biopharmaceutical company, has priced its underwritten public offering of American Depositary Shares (ADSs) at $9.25 each, with an expectation to raise approximately $100 million in gross proceeds. The company announced on Tuesday that it is offering 10,810,810 ADSs, each representing one ordinary share.
The offering is scheduled to close around April 26, 2024, subject to standard closing conditions. Centessa has also provided underwriters a 30-day option to purchase up to an additional 1,621,621 ADSs at the public offering price, after underwriting discounts and commissions.
The joint book-running managers for the offering are Goldman Sachs, Leerink Partners, Evercore ISI, Guggenheim Securities, and BMO Capital Markets. The ADSs are offered under a registration statement on Form S-3, declared effective by the Securities and Exchange Commission (SEC) on July 12, 2022.
Centessa's portfolio includes advanced programs in hemophilia, sleep-wake disorders, and immuno-oncology, with a focus on its proprietary LockBody® technology platform. The company aims to develop transformative medicines for patients, potentially changing the current treatment standards.
The risks related to the completion of the proposed public offering and the satisfaction of customary closing conditions are detailed in Centessa's regulatory filings with the SEC, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
InvestingPro Insights
As Centessa Pharmaceuticals (NASDAQ:CNTA) ventures into its latest public offering, keen investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Centessa's market capitalization stands at a solid $1.06 billion, reflecting a significant presence in the biopharmaceutical sector.
Despite the company's robust gross profit margin of 100% over the last twelve months as of Q4 2023, it's crucial to note that Centessa has not been profitable during this period, with a striking operating income margin of -2499.39%. This aligns with one of the InvestingPro Tips indicating that analysts do not anticipate the company will be profitable this year. Moreover, Centessa's P/E ratio is currently negative at -7.20, and when adjusted for the last twelve months, it stands at -6.07, underlining the challenges the company faces in achieving profitability.
On a brighter note, the company's stock has shown a strong return over the last year, with a 109.21% price total return. This is further supported by a 50.6% price uptick over the last six months and a 25% increase over the last three months, suggesting a robust short-term investment performance. Such dynamics may pique the interest of growth-oriented investors, especially considering that Centessa holds more cash than debt on its balance sheet, as highlighted by another InvestingPro Tip.
Investors seeking more in-depth analysis and additional InvestingPro Tips can find them on the Centessa-specific page at Investing.com/pro/CNTA. Currently, there are more than 10 additional tips available, which could provide valuable insights into Centessa's future prospects. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off.
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