CELEBRATION, Fla. - Zevra Therapeutics, Inc. (NASDAQ:ZVRA), a company focused on developing treatments for rare diseases, announced today the initiation of a public offering of its common stock. The entirety of the shares in this offering will be sold by Zevra.
In addition to the base offering, Zevra plans to provide underwriters a 30-day option to purchase up to an additional 15% of the shares at the public offering price, after accounting for underwriting discounts and commissions. The completion of the offering, its size, and terms are subject to market conditions and cannot be guaranteed.
Cantor and William Blair are serving as the joint book-running managers for the offering. Zevra's offering is based on a registration statement that became effective on June 13, 2024. The offering is made through a prospectus supplement and the accompanying prospectus, part of the registration statement.
Investors interested in the offering may obtain the preliminary prospectus supplement and the accompanying prospectus from the SEC's website once filed. Additionally, copies will be available from Cantor Fitzgerald & Co. and William Blair & Company upon request.
Founded with the mission to address unmet needs in the rare disease community, Zevra Therapeutics uses a data-driven approach to overcome drug development challenges and bring new treatments to market.
In other recent news, Zevra Therapeutics reported key developments in its Q1 2024 earnings call. The company launched OLPRUVA for urea cycle disorders, is preparing for the potential introduction of Arimoclomol for Niemann-Pick Disease Type C, and has advanced the KP1077 program for sleep disorders. Financially, Zevra Therapeutics secured a new credit facility providing up to $100 million in committed capital, with expectations that its cash runway will extend into 2026.
The financial results for Q1 2024 showed net revenue of $3.4 million and a net loss of $16.6 million, with an increase in shares outstanding from 41.5 million to 41.8 million. Despite increased research and development and administrative expenses, the company remains positive about its strategic priorities and upcoming catalysts in the second half of 2024.
InvestingPro Insights
Zevra Therapeutics (NASDAQ:ZVRA), a pioneer in the rare disease space, has recently caught the attention of investors with its public stock offering announcement. As the company seeks to expand its financial horizons, a closer look at its financial metrics and market performance provides a deeper understanding of its current position.
One of the standout InvestingPro Data metrics for Zevra is its impressive Gross Profit Margin, which stands at a robust 89.19% for the last twelve months as of Q1 2024. This indicates a strong ability to manage production costs and maintain profitability on its products. Additionally, the company has experienced a significant Revenue Growth of 195.67% during the same period, highlighting its rapid expansion in the rare disease market.
InvestingPro Tips reveal a mixed picture for the company. On the positive side, Zevra has demonstrated a strong return over the last week, month, and three months, with respective increases of 14.92%, 61.25%, and 40.31% in its stock price. This suggests a growing investor confidence in the short term. However, analysts are cautious about the company's near-term profitability, not anticipating Zevra to be profitable this year, and expecting a decline in net income.
With a market capitalization of $310.13M and a high Price / Book multiple of 6.34, Zevra's valuation reflects investor optimism about its future growth prospects, despite current profitability challenges. The company's stock price, as of the previous close, stood at $7.24.
For investors considering participation in Zevra's stock offering, these insights may prove crucial. It's important to note that these are just a few highlights, and there are additional InvestingPro Tips available that can help investors make more informed decisions. In fact, there are 13 total InvestingPro Tips listed for Zevra, which can be accessed for further detailed analysis.
Zevra's forward-looking approach to drug development for rare diseases continues to intrigue the market, and its financials reflect a company on the move, albeit with some cautionary notes from analysts. As Zevra prepares for its public offering, potential investors can leverage these insights to assess the opportunity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.