Cogent Biosciences prices upsized offering of shares of stock

Cogent Biosciences prices upsized offering of shares of stock

Cogent Biosciences Inc. (NASDAQ: COGT) announced on Tuesday that it has increased its share offering to $150 million, a significant upsize from its initial plans. The Waltham, Massachusetts-based biotechnology company aims to raise funds to support the development, regulatory, and commercial preparation activities for its lead product candidate, bezuclastinib, as well as to support its planned commercial launch and general corporate purposes [1].

The offering is being managed by J.P. Morgan, Leerink Partners, and Guggenheim Securities as joint book-running managers, with LifeSci Capital acting as the lead manager. The company will grant underwriters a 30-day option to purchase up to an additional $22.5 million of shares on the same terms [2].

Cogent Biosciences focuses on developing precision therapies for genetically defined diseases. The company's stock decline, which saw a drop of more than 7% in extended trading, reflects typical market reactions to share offerings, which can dilute existing shareholders' ownership stakes.

The increased offering comes at a critical time for the company as it continues to advance bezuclastinib, a drug candidate that has shown promising results in clinical trials. The additional funds will be crucial for Cogent Biosciences to maintain its momentum in the development and commercialization of its products.

References:
[1] https://www.investing.com/news/stock-market-news/cogent-biosciences-stock-falls-on-150-million-share-offering-93CH-4127293
[2] https://seekingalpha.com/news/4465987-cogent-biosciences-announces-150m-public-offering-of-common-stock