NEW YORK - Protara Therapeutics, Inc. (NASDAQ:TARA), a clinical-stage company focused on developing treatments for cancer and rare diseases, has initiated a public offering of common stock and, for some investors, pre-funded warrants to purchase common stock. The company's stock has shown remarkable momentum, delivering a 269% return over the past year, according to InvestingPro data. This move aims to raise funds for the clinical development of its drug candidate TARA-002 and other clinical programs.
The offering, which is subject to market conditions and other factors, will see all shares and warrants sold by Protara. The company also plans to offer underwriters a 30-day option to purchase additional shares at the public offering price, minus underwriting discounts and commissions.
While the exact size and terms of the offering are not finalized, Protara intends to allocate the net proceeds towards advancing TARA-002's clinical trials, other program developments, working capital, and general corporate purposes. The company maintains a healthy current ratio of 9.85, indicating strong short-term liquidity. InvestingPro subscribers can access 14 additional key insights about Protara's financial position and market performance.
TD Cowen, Cantor, LifeSci Capital, Oppenheimer & Co., and Scotiabank (TSX:BNS) are serving as joint book-running managers for the offering. The securities will be issued under a shelf registration statement that was declared effective by the U.S. Securities and Exchange Commission (SEC) on November 14, 2023.
Investors can access the preliminary prospectus supplement and accompanying prospectus related to the offering on the SEC's website or obtain copies from the offices of the joint book-running managers.
Protara's forward-looking statements in the press release indicate that the proposed offering's timing, size, and completion are not guaranteed and are subject to risks and uncertainties. The company's ability to complete the offering and the anticipated use of proceeds are dependent on market conditions and other factors.
This announcement 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. With a market capitalization of approximately $140 million and current stock price showing significant momentum, investors should note that InvestingPro's Fair Value analysis suggests the stock is currently overvalued. Any sale in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction is prohibited.
In other recent news, Protara Therapeutics has made significant progress with its clinical trials. Analyst firms H.C. Wainwright, TD Cowen, and Oppenheimer have maintained their positive ratings on the company's stock following promising results from the Phase II ADVANCED-2 trial of TARA-002 in high-risk non-muscle invasive bladder cancer (HR-NMIBC). The trial data showcased an 80% complete response rate (CRR) at any time for patients unresponsive to the Bacillus Calmette-Guerin (BCG) treatment, and an impressive 100% CRR at 6 months for this group.
Furthermore, the U.S. Food and Drug Administration (FDA) granted Fast Track designation to Protara's investigational therapy, Intravenous (IV) Choline Chloride, aimed at treating patients requiring parenteral support. This development underscores the urgency of addressing choline deficiency in these patients, which can lead to severe health issues.
Additionally, Protara Therapeutics has reported positive results from its LM registrational trial, where two out of three patients showed a complete response after a single dose of TARA-002. These developments highlight the company's commitment to addressing unmet medical needs through innovative therapies.
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