WATERTOWN, Mass. and GOSSELIES, Belgium - iTeos Therapeutics, Inc. (NASDAQ:ITOS), a biopharmaceutical company engaged in developing immuno-oncology therapeutics, has entered into an agreement to sell over 1.1 million shares of common stock at $17.50 per share, a significant premium over its last closing price. The transaction, which also includes pre-funded warrants to purchase additional shares, is expected to gross approximately $120 million before costs.
This registered direct offering is led by RA Capital Management and Boxer Capital, both existing investors in the company. The offering price represents approximately a 44% premium to iTeos' closing stock price on the previous trading day. The pre-funded warrants have an exercise price of $0.001 per share and are exercisable immediately.
The company anticipates that the offering will close around May 14, 2024, subject to customary closing conditions. The proceeds are earmarked to support the advancement of iTeos' clinical programs, its preclinical pipeline, and for general corporate purposes, with the aim of extending the company's financial runway through 2027.
The securities were offered pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on May 10, 2023, and declared effective on May 19, 2023. A final prospectus supplement related to the offering will be filed with the SEC.
iTeos Therapeutics operates out of Watertown, MA, with a research center in Gosselies, Belgium. The company focuses on the discovery and development of novel therapies aimed at modulating immunosuppressive pathways within the tumor microenvironment, a strategy that could potentially improve clinical outcomes for cancer patients.
This announcement is based on a press release statement.
InvestingPro Insights
In light of iTeos Therapeutics' recent announcement of its registered direct offering, it's worth considering the company's financial and market position as reflected in real-time data from InvestingPro. With a market capitalization of $438.42 million, iTeos Therapeutics is navigating a challenging financial landscape, as indicated by its negative P/E ratio of -3.89 for the last twelve months as of Q4 2023. This figure suggests that investors are currently valuing the company at a loss, which aligns with the fact that analysts do not expect the company to be profitable this year. Additionally, the company's revenue has seen a significant contraction, with a -95.29% change over the last twelve months as of Q4 2023.
Despite these challenges, iTeos Therapeutics does hold more cash than debt on its balance sheet, which is a positive sign of financial stability. This is further supported by the fact that the company's liquid assets exceed its short-term obligations. An InvestingPro Tip also notes that 2 analysts have revised their earnings upwards for the upcoming period, which could signal a potential shift in the company's trajectory. However, it's important to be aware that iTeos is quickly burning through cash, which may impact its financial runway.
Investors may also take note of the company's stock performance, which has experienced a large price uptick over the last six months, with a 27.51% total return. This could be indicative of growing investor confidence or speculative interest in the company's future prospects. For those looking to delve deeper into iTeos Therapeutics' financials and market potential, InvestingPro provides additional tips and metrics. There are 8 more InvestingPro Tips available that could offer further insights into the company's performance and outlook.
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