Protara makes US$75m pre-emptive strike
Protara Therapeutics padded its balance sheet late Thursday with US$75m from an overnight stock sale ahead of an expected uptick in biotech issuance in coming weeks.
JP Morgan, TD Cowen and Piper Sandler were covered at launch from an earlier wall-cross, allowing them to price 13m shares at US$5.75, the bottom of the US$5.75–$6.25 range and a 16.3% discount to the previous closing price of US$6.87.
The biotech is using the money to finish a Phase II trial for its bladder cancer drug.
The proceeds from the stock sale, combined with US$147m of existing cash, are enough for Protara to finish the Phase II trial next year with money left over for Phase III trials.
By raising cash now, Protara avoided an expected uptick in activity following the American Society of Hematology’s 67th annual ASH meeting being held in Orlando, Florida, on December 6-9.
Based on trial results included in ASH presentation abstracts, life science-focused ECM bankers are optimistic about biotech issuance accelerating into the end of 2025. "It's going to get busy," one banker told IFR.