Mineralys Therapeutics starts $175m share offering

Mineralys Therapeutics starts $175m share offering

Mineralys Therapeutics (NASDAQ: MLYS), a clinical-stage biopharmaceutical company, has announced a proposed public offering of $175.0 million in common stock shares. The company plans to grant underwriters a 30-day option to purchase up to an additional $26.25 million of shares. The proceeds from this offering will primarily fund the clinical development of lorundrostat, a drug targeting hypertension and related conditions such as chronic kidney disease and obstructive sleep apnea [1].

The offering will be managed by several prominent investment banks, including BofA Securities, Evercore ISI, Goldman Sachs, Stifel, and Wells Fargo Securities as joint book-running managers. The company aims to use the net proceeds to fund research and development, manufacturing, pre-commercialization activities, and general corporate purposes [1].

The offering demonstrates institutional confidence in Mineralys's clinical program, but it also indicates the company's need for substantial additional funding to advance lorundrostat through later-stage development. For clinical-stage biotech companies like Mineralys, such offerings represent a critical but dilutive necessity to fund the expensive later phases of drug development [1].

Analysts have given Mineralys Therapeutics a consensus rating of Buy, with an average rating score of 3.00. The company's forecasted upside from its current price of $10.74 is 235.2%, based on an analyst consensus price target of $36.00 [2].

Mineralys Therapeutics is focused on developing medicines to target hypertension and related comorbidities. Its initial product candidate, lorundrostat, is a proprietary, orally administered, highly selective aldosterone synthase inhibitor. The company is based in Radnor, Pennsylvania, and was founded by Catalys Pacific [1].

References:
[1] https://www.stocktitan.net/news/MLYS/mineralys-therapeutics-announces-proposed-public-offering-of-common-p07n5u46wfrb.html
[2] https://www.marketbeat.com/stocks/NASDAQ/MLYS/