Intellia Therapeutics Gears Up for Secondary Offering
Intellia Therapeutics saw its shares take a dip on Thursday after the firm announced the pricing of its secondary offering.
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Intellia Therapeutics Inc. (NASDAQ: NTLA) saw its shares take a dip on Thursday after the firm announced the pricing of its secondary offering. Looking at the chart, this seems to be the perfect time for an offering. The stock has run up about 94% in just 2017, excluding Thursday’s move, and now is a great time to capitalize on this.
The company plans to price its 6.25 million shares of its common stock at a public offering price of $24 per share, with an overallotment option for an additional 937,500 shares. At this price, the entire offering is valued up to $172.5 million. The offering is expected to close on November 6.
The underwriters for the offering are Credit Suisse, Jefferies and Leerink Partners.
For some quick background: this is a leading genome editing company focused on the development of proprietary, potentially curative therapeutics utilizing a biological tool known as CRISPR/Cas9. Management believes that the CRISPR/Cas9 technology has the potential to transform medicine by permanently editing disease-associated genes or genetic material in the human body with a single treatment course. The firm intends to leverage its leading scientific expertise, clinical development experience and intellectual property position to unlock broad therapeutic applications of CRISPR/Cas9 genome editing and develop a potential new class of therapeutic products.
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Intellia intends to use the net proceeds from this offering, together with its existing cash and cash equivalents for research and development and clinical development costs, to support the advancement of its potential product candidates and the expansion of its research and development programs. The remainder will be put toward working capital, capital expenditures and other general corporate purposes.
Shares of Intellia were last seen down about 16.3% at $21.32, with a consensus analyst price target of $27.83 and a 52-week range of $10.83 to $33.34.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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