DALLAS - Taysha Gene Therapies, Inc. (NASDAQ: TSHA), a company specializing in gene therapies for central nervous system diseases, announced an underwritten public offering of over 14 million shares of common stock priced at $2.25 each. Moreover, pre-funded warrants to purchase nearly 19 million shares are being offered at $2.249 per warrant, before underwriting discounts and commissions.
The Dallas-based biotech firm also granted underwriters a 30-day option to buy up to an additional 15% of shares at the offering price minus the underwriting discount. The company anticipates gross proceeds of around $75 million, excluding potential additional sales and before expenses. The offering is expected to close by Thursday, subject to standard conditions.
Jefferies and Goldman Sachs (NYSE:GS) & Co. LLC are serving as the joint book-running managers, with Cantor also participating as a book-running manager. The securities are being offered pursuant to a shelf registration statement filed and declared effective by the SEC in October 2021.
The proceeds from this offering are expected to support Taysha's continued research and development activities. Their lead clinical program, TSHA-102, is currently in development for Rett syndrome, a rare neurodevelopmental disorder that currently has no approved therapies targeting the genetic cause.
The offering is made through a prospectus and prospectus supplement, part of the registration statement. Interested parties can obtain these documents from the SEC's website or directly from the managing book-runners.
This press release, which serves as the basis for this article, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction. The information presented here is a summary of the key facts from the press release statement by Taysha Gene Therapies, Inc.
In other recent news, Taysha Gene Therapies has made significant strides in its gene therapy program, TSHA-102, for the treatment of Rett Syndrome. The company reported encouraging longer-term data in adult patients and initiated enrollment in the high-dose cohort of its REVEAL Phase I/II trial. The FDA has also granted TSHA-102 the Regenerative Medicine Advanced Therapy (RMAT) designation, reflecting its potential to address the challenges of Rett Syndrome.
Analyst firms including Cantor Fitzgerald, JMP Securities, and Piper Sandler & Co. have set optimistic price targets for Taysha, considering the company's promising early clinical improvements and significant market potential.
The company's cash reserves of $124M are projected to fund operations until 2026, ensuring its financial stability. Despite the inherent risks associated with gene therapy development and competition from other biotech firms, Taysha remains focused on demonstrating the efficacy and safety of TSHA-102.
The company anticipates significant data collection throughout 2024, with updates expected in mid-2024 and the latter half of the year. These developments are part of Taysha's strategy to address the high unmet medical needs in Rett Syndrome treatment. It's worth noting that these are recent developments and should be considered in the context of the company's overall performance and strategy.
InvestingPro Insights
As Taysha Gene Therapies, Inc. (NASDAQ: TSHA) ventures into new funding territory with its latest public offering, the current financial landscape painted by InvestingPro Data suggests a mixed bag of opportunities and challenges. The company's market capitalization stands at $461 million, reflecting its position in the biotech sector.
Despite a notable revenue growth of 96.39% in the last twelve months as of Q1 2024, Taysha faces a quarterly revenue decline of 27.52% in Q1 2024. This indicates a potential volatility in revenue streams, which investors should consider as they evaluate the offering's prospects.
Two critical InvestingPro Tips for Taysha Gene Therapies highlight the financial intricacies the company is navigating. Firstly, Taysha holds more cash than debt on its balance sheet, providing a cushion for its research and development endeavors. However, the company is also quickly burning through cash, which is a point of concern considering the intense capital requirements of the biotech industry. Moreover, analysts do not anticipate the company will be profitable this year, underscoring the importance of the proceeds from this public offering to fund ongoing projects like TSHA-102.
For investors looking for a deeper dive into Taysha's financial health and future prospects, there are an additional 10 InvestingPro Tips available, which can be accessed through the company's page on InvestingPro: https://www.investing.com/pro/TSHA. To make this premium analysis more accessible, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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