Street Calls of the Week
NEW YORK/WALTHAM - Dianthus Therapeutics, Inc. (NASDAQ:DNTH) announced Thursday it has closed its previously announced underwritten public offering, raising approximately $288 million in gross proceeds. The company’s stock has shown remarkable momentum, with InvestingPro data showing a 53.69% return in the past week alone, pushing its market capitalization to $1.21 billion.
The clinical-stage biotechnology company, which focuses on developing antibody complement therapeutics for autoimmune diseases, sold 7,627,879 shares of common stock at $33.00 per share. The offering included the full exercise of underwriters’ option to purchase an additional 1,140,000 shares. According to InvestingPro, the company maintains a strong balance sheet with more cash than debt, and its current ratio of 13.12 indicates robust liquidity.
In addition to the common stock, Dianthus issued pre-funded warrants to purchase up to 1,112,121 shares at a price of $32.999 per warrant to certain investors. These warrants have an exercise price of $0.001 per share and are immediately exercisable.
The company plans to use the net proceeds to advance its preclinical and clinical development programs, as well as for working capital and general corporate purposes.
Jefferies, TD Cowen, Evercore ISI and Stifel served as joint book-running managers for the offering, with LifeSci Capital acting as lead manager.
The offering was made pursuant to a shelf registration statement that became effective on October 9, 2024, according to the company’s press release statement.
Dianthus Therapeutics is based in New York City and Waltham, Massachusetts, and is developing treatments for people with severe autoimmune and inflammatory diseases. Analyst price targets for the company range from $40 to $100 per share, reflecting strong confidence in its potential. InvestingPro subscribers can access 12 additional key insights about DNTH’s financial health and market position.
In other recent news, Dianthus Therapeutics has priced its upsized public offering at $251 million, with shares set at $33.00 each. This offering includes pre-funded warrants for certain investors, which are immediately exercisable. In addition to this, the company has announced a $150 million public stock offering, providing underwriters a 30-day option to purchase an additional $22.5 million in shares. The company’s recent Phase 2 MaGic study results for its gMG treatment have prompted Jefferies to raise its stock price target to $66, citing the data as a positive factor. Raymond James also increased its price target to $63, maintaining an Outperform rating. H.C. Wainwright has reiterated its Buy rating with a $40 price target following the positive trial outcomes. These developments highlight recent significant activities and analyst reactions surrounding Dianthus Therapeutics.
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