Trevi Therapeutics, Inc. (NASDAQ:TRVI) experienced a roughly 10% decline in its share price in after-hours trading on Thursday after the company disclosed plans for a material common stock offering.
The clinical-stage biopharmaceutical company said it has commenced an underwritten public offering aimed at raising $150 million through the sale of common stock. Trevi stated that all shares in the offering will be sold by the company itself.
Included in the terms of the offering is a 30-day option for the underwriters to purchase up to an additional $22.5 million of common stock at the public offering price, less underwriting discounts and commissions.
Trevi is developing Haduvio (oral nalbuphine ER), an investigational therapy intended to treat chronic cough occurring in patients with idiopathic pulmonary fibrosis, non-IPF interstitial lung disease, and refractory chronic cough. The company identified itself as a clinical-stage biopharmaceutical firm in connection with the financing.
The syndicate leading the offering includes Morgan Stanley, Leerink Partners, Cantor, and Stifel as joint book-running managers, with Oppenheimer & Co. serving as lead manager.
Summary
Trevi Therapeutics announced an underwritten public offering of $150 million of its common stock, prompting a roughly 10% drop in after-hours trading on Thursday. The firm will sell all shares in the offering and has given underwriters a 30-day option to acquire up to an additional $22.5 million of stock. The company is advancing Haduvio (oral nalbuphine ER) for chronic cough in multiple patient groups. Morgan Stanley, Leerink Partners, Cantor, and Stifel are joint book-running managers, and Oppenheimer & Co. is the lead manager.
Key points
- Trevi has launched an underwritten public offering of $150 million of common stock, with all offered shares to be sold by the company.
- Underwriters have a 30-day option to buy up to an extra $22.5 million of common stock at the public offering price, minus underwriting discounts and commissions.
- The company is developing Haduvio (oral nalbuphine ER) for chronic cough in patients with idiopathic pulmonary fibrosis, non-IPF interstitial lung disease, and refractory chronic cough; the financing was led by a syndicate including Morgan Stanley, Leerink Partners, Cantor, Stifel, and Oppenheimer & Co.
Risks and uncertainties
- Market reaction - The company s share price fell about 10% in after-hours trading, reflecting investor response to the announcement.
- Share dilution - Because Trevi is selling all shares in the offering, existing shareholders may experience dilution if the offering is completed.
- Offering size variability - The underwriters option to purchase up to an additional $22.5 million introduces uncertainty about the final size of the issuance.
The information presented here reflects the details Trevi disclosed about the proposed offering and the parties involved. No additional outcomes or future developments were stated in the company s announcement.