CAMBRIDGE, Mass. - Prime Medicine, Inc. (NASDAQ:PRME), a biotechnology firm, has finalized an upsized public offering, raising gross proceeds of approximately $161 million, the company announced Monday. The transaction included 22,560,001 shares of common stock and pre-funded warrants to purchase 3,200,005 shares.
The offering price was set at $6.25 per share for the common stock and $6.24999 per pre-funded warrant, with the latter being offered to certain investors instead of common stock. The full exercise of the underwriters' option added an additional 3,360,000 shares to the offering.
J.P. Morgan, Jefferies, TD Cowen, and BMO Capital Markets served as joint book-running managers, while Chardan took on the role of lead manager. The securities were offered pursuant to a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on November 3, 2023, and declared effective on November 13, 2023.
Prime Medicine specializes in the development of one-time curative genetic therapies using its proprietary Prime Editing platform. This technology aims to make precise gene edits while minimizing unintended DNA modifications. The company is advancing a diversified portfolio of eighteen programs targeting genetic diseases with high unmet needs or where other gene-editing approaches fall short.
The final prospectus supplement detailing the terms of the offering is available on the SEC's website. This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities.
InvestingPro Insights
Following the recent public offering by Prime Medicine, Inc. (NASDAQ:PRME), the biotechnology company's financial standing and market performance are of keen interest to investors. With an adjusted market capitalization of $969.77 million, Prime Medicine is a notable player in the biotech sector. The company's stock has experienced a notable one-month price total return of 30.15% as of the latest available data, indicating a significant investor interest post-offering.
InvestingPro data shows that the company's Price to Earnings (P/E) Ratio stands at a negative -3.18, with an adjusted P/E ratio for the last twelve months as of Q3 2023 at a further reduced -5.43. This suggests that the company is not currently profitable, which is not uncommon for biotech firms in the development stage. The Price to Book ratio was 4.73 for the same period, reflecting how the market values the company relative to its book value.
InvestingPro Tips highlight that despite the recent surge in stock price, the company's financials show a gross profit of -$89.69 million and an operating income of -$175.44 million for the last twelve months as of Q3 2023. These figures underscore the high costs associated with research and development in the biotech industry, as well as the potential for future profitability should the company's gene-editing therapies prove successful.
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