Celcuity announces $225 million in proposed public offerings

MINNEAPOLIS - Celcuity Inc. (NASDAQ:CELC), a clinical-stage biotechnology company focused on targeted cancer therapies with a current market capitalization of $1.41 billion, announced Monday proposed public offerings totaling $225 million, consisting of $150 million in convertible senior notes due 2031 and $75 million in common stock. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 6.61, though it’s currently experiencing rapid cash burn.

The company plans to grant underwriters 30-day options to purchase up to an additional $22.5 million in convertible notes and $11.25 million in common stock to cover potential over-allotments.

The convertible notes will be unsecured senior obligations with interest payable semi-annually, maturing on August 1, 2031, unless converted, redeemed, or repurchased earlier. Upon conversion, Celcuity may deliver cash, shares, or a combination at its discretion.

In connection with the convertible notes offering, Celcuity expects to enter into capped call transactions with underwriters or their affiliates to potentially reduce dilution from conversions.

Proceeds will fund the capped call transactions, with the remainder allocated to working capital and general corporate purposes, including clinical trials, commercial launch preparations, research and development, and business development.

Jefferies, TD Cowen, and Leerink Partners are serving as joint book-running managers for both offerings, with LifeSci Capital acting as lead manager for the notes offering and passive bookrunner for the stock offering.

Celcuity’s lead therapeutic candidate is gedatolisib, a PI3K and mTORC1/2 inhibitor currently being evaluated in multiple clinical trials, including the Phase 3 VIKTORIA-1 and VIKTORIA-2 studies for advanced breast cancer. With earnings per share at -$3.04 and analysts not anticipating profitability this year, investors can access detailed analysis and 10+ additional ProTips through InvestingPro’s comprehensive research reports.

The offerings are subject to market conditions, and their completion is not dependent on each other, according to the company’s press release statement.

In other recent news, Celcuity Inc. has announced positive results from its Phase 3 VIKTORIA-1 clinical trial for its breast cancer drug, gedatolisib. The trial revealed that the gedatolisib triplet therapy reduced the risk of disease progression or death by 76% compared to fulvestrant alone, with a median progression-free survival of 9.3 months versus 2.0 months. The gedatolisib doublet therapy also showed a significant reduction in risk by 67%, with a median progression-free survival of 7.4 months. In addition to these promising trial results, Celcuity has been granted a U.S. patent for the clinical dosing regimen of gedatolisib, extending its patent exclusivity until 2042. This patent adds to the company’s extensive intellectual property portfolio, which includes numerous patents both in the U.S. and internationally. These developments mark significant progress for Celcuity in the field of advanced breast cancer treatment.

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