BEDFORD, Mass. – Ocular Therapeutix, Inc. (NASDAQ:OCUL), a biopharmaceutical company specializing in eye disease treatments, has announced a private placement agreement with institutional investors to raise approximately $325 million. The funding is intended to accelerate clinical trials for its wet AMD (NASDAQ:AMD) treatment, AXPAXLI™, among other corporate purposes.
The private placement, which is expected to close on February 26, 2024, involves the sale of over 32 million shares at $7.52 each and pre-funded warrants for nearly 11 million shares at $7.519 each, with an exercise price of $0.001 per share. Both new and existing investors are participating, including Venrock Healthcare Capital Partners and Surveyor Capital.
The proceeds will support the ongoing SOL-1 pivotal Phase 3 clinical trial and the planned SOL-2 Phase 3 clinical trial for AXPAXLI™, as well as other development programs. The securities sold have not been registered under the Securities Act and are subject to customary closing conditions.
Ocular Therapeutix's portfolio includes the FDA-approved DEXTENZA® for post-surgical ocular inflammation and pain, and allergic conjunctivitis. Other products in development target conditions like glaucoma, diabetic retinopathy, and dry eye disease.
The information in this article is based on a press release statement from Ocular Therapeutix, Inc.
InvestingPro Insights
As Ocular Therapeutix, Inc. (NASDAQ:OCUL) embarks on its ambitious clinical trials for AXPAXLI™, the company's financial and market metrics provide a nuanced picture of its current standing. According to InvestingPro data, Ocular Therapeutix holds a market capitalization of $828.84 million and has experienced significant revenue growth over the last twelve months as of Q1 2023, at 16.07%. This growth narrative is further bolstered by a 26.04% quarterly revenue growth in Q3 2023, showcasing the company's dynamic revenue trajectory amid its clinical advancements.
Investors may note the company's high Price / Book multiple of 105.54 as of Q3 2023, which may reflect market optimism about the company's assets relative to its equity value. However, it's important to consider that Ocular Therapeutix has been operating with negative gross profit margins (-9.69%) and has not been profitable over the last twelve months, with an adjusted P/E ratio of -10.46. This underscores the company's current investment phase as it channels funds into research and development.
On the performance front, the company has seen a significant return over the past week, with a 9.62% price total return. This short-term uptick could be indicative of investor confidence following the announcement of the private placement agreement, which is set to bring substantial capital infusion to the company.
For those considering a deeper dive into Ocular Therapeutix's prospects, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available that can provide a more comprehensive understanding of the company's financial health and market position. For example, the company's moderate level of debt and the fact that its liquid assets exceed short-term obligations could be seen as positive indicators of financial stability.
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