CAMBRIDGE, England & BOSTON - Bicycle Therapeutics plc (NASDAQ: NASDAQ:BCYC), a biopharmaceutical company focused on developing precision-guided therapeutics, announced the successful procurement of approximately $555 million through a private investment in public equity (PIPE) financing. The company issued 25,933,706 American Depositary Shares (ADSs) at $21.42 per share, with the option for investors to choose non-voting ordinary shares instead.
The financing round, expected to close on May 28, 2024, saw participation from both new and existing investors, including a leading U.S.-based healthcare investor and several other notable capital management firms. The proceeds from the PIPE are earmarked for the advancement of Bicycle's clinical-stage pipeline, as well as for general corporate purposes.
Dr. Kevin Lee, CEO of Bicycle Therapeutics, expressed optimism about the financing, highlighting the investors' confidence in the company's Bicycle® platform. He anticipates that the funding will bolster the company's progress across various programs and support the discovery pipeline, with several key milestones anticipated in the latter half of 2024.
Following the close of the transaction, Bicycle Therapeutics expects its cash reserves to reach approximately $1.0 billion, which is projected to extend the company's financial runway into the second half of 2027. The company notes that this estimate is preliminary and subject to change.
Jefferies is serving as the sole placement agent for the PIPE financing. The securities offered in the PIPE have not been registered under the Securities Act of 1933 and are being sold pursuant to exemptions from registration requirements. Bicycle Therapeutics has committed to filing a registration statement with the SEC to allow for the resale of the ADSs and ordinary shares issued in the PIPE.
Bicycle Therapeutics specializes in a new class of synthetic short peptides, constrained to form two loops that enable high affinity and selectivity in target binding. The company's portfolio includes several proprietary clinical trials targeting cancer and other diseases. The firm operates out of Cambridge, UK, and maintains a significant presence in Cambridge, Massachusetts.
This financial move is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
Bicycle Therapeutics (NASDAQ: BCYC) has recently demonstrated a significant commitment from investors, raising $555 million through a PIPE financing at $21.42 per share. This strategic financial move is set to enhance the company's clinical-stage pipeline and overall corporate development. Here are some insights based on the latest data and analysis from InvestingPro:
InvestingPro Data highlights that BCYC has a market capitalization of approximately $916.33 million. Despite a challenging gross profit margin reported at -283.12% for the last twelve months as of Q1 2024, the company has experienced substantial revenue growth of 168.47% during the same period. This suggests that while profitability may be a concern, the company's top-line growth is robust.
An InvestingPro Tip that stands out is that analysts have revised their earnings estimates upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Moreover, BCYC's liquid assets have been reported to exceed short-term obligations, which speaks to the company's financial stability and its ability to meet its immediate financial commitments.
Investors may also find it noteworthy that BCYC has had a large price uptick of 54.99% over the last six months, which could reflect growing market confidence in the company's growth prospects. This is in line with the company's recent successful financing round and may be indicative of its potential for future appreciation.
For those interested in further analysis and additional InvestingPro Tips, there are 7 more tips available for BCYC on InvestingPro. To gain deeper insights and make more informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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