CRANBURY, N.J. - Rocket Pharmaceuticals, Inc. (NASDAQ: NASDAQ:RCKT), a biotechnology firm focused on genetic therapies for rare disorders, announced its intention to offer $150 million of its common stock in an underwritten public offering. The company, currently trading at $13.51 with a market capitalization of $1.23 billion, appears slightly undervalued according to InvestingPro analysis. This move is accompanied by an option for underwriters to purchase an additional 15% of shares within 30 days. The completion of this offering is contingent upon market conditions, and no assurances can be made regarding the final terms or successful execution of the offering.
Morgan Stanley (NYSE:MS), Leerink Partners, and Cantor are serving as joint book-running managers, while LifeSci Capital is the lead manager for the offering. InvestingPro data shows the company maintains a strong balance sheet with more cash than debt, though it's currently experiencing rapid cash burn. Nine analysts have recently revised their earnings expectations upward, with price targets ranging from $29 to $65. The sale of shares will proceed under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC). Details of the offering will be outlined in a preliminary prospectus supplement and accompanying prospectus, which will be accessible via the SEC's website.
Rocket Pharmaceuticals, with a pipeline of investigational gene therapies, targets conditions such as Fanconi Anemia, Leukocyte Adhesion Deficiency-I, and Pyruvate Kinase Deficiency through its lentiviral vector-based hematology portfolio. Additionally, its cardiovascular portfolio through adeno-associated viral vectors addresses diseases like Danon disease, arrhythmogenic cardiomyopathy, and BAG3-associated dilated cardiomyopathy.
The forward-looking statements regarding the offering's timing and terms are subject to risks and uncertainties, including market fluctuations and the satisfaction of closing conditions. The stock has recently faced headwinds, trading near its 52-week low of $12.62, with a year-to-date decline of approximately 54%. For deeper insights into RCKT's financial health and market position, investors can access comprehensive analysis through the InvestingPro Research Report, which is part of the platform's coverage of over 1,400 US stocks. Potential investors are cautioned not to place undue reliance on these statements, which are valid only as of their dates. Rocket Pharmaceuticals does not undertake any obligation to publicly update forward-looking statements.
This announcement is based on a press release statement and does not serve as an offer to sell or a solicitation to buy securities. The offering will not proceed in jurisdictions where it would be unlawful prior to registration or qualification under the local securities laws.
"In other recent news, Rocket Pharmaceuticals has released promising long-term data from its Phase 1 program for Danon disease, demonstrating sustained improvements in cardiac health and quality of life in all evaluated patients. This positive outcome has led to Canaccord Genuity maintaining its Buy rating for the company. The firm's confidence is further bolstered by the completion of enrollment for the ongoing pivotal Phase 2 trial, marking a significant milestone in the drug's development.
Moreover, Rocket Pharmaceuticals has appointed Dr. Mikael Dolsten to its Board of Directors and has initiated a rolling Biologics License Application with the U.S. Food and Drug Administration for RP-L102, a potential treatment for Fanconi Anemia. Morgan Stanley has also maintained an Overweight rating on the company, highlighting the potential of RP-A501 and the importance of addressing the high unmet need in Danon disease.
These recent developments underscore the progress Rocket Pharmaceuticals is making in its mission to develop gene therapies for rare genetic disorders. Despite receiving a Complete Response Letter from the FDA regarding its Biologics License Application for KRESLADI™, a gene therapy designed to treat severe leukocyte adhesion deficiency-I, Canaccord Genuity remains optimistic that the issues will be resolved."
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