Street Calls of the Week
REDWOOD CITY, Calif. - Jasper Therapeutics, Inc. (NASDAQ:JSPR) announced Thursday its intention to launch an underwritten public offering of its common stock and accompanying warrants, subject to market conditions. The announcement comes as the company’s stock has declined nearly 90% year-to-date, according to InvestingPro data, though analysts maintain price targets ranging from $4 to $51 per share.
The clinical-stage biotechnology company, which focuses on developing briquilimab, an antibody therapy targeting KIT (CD117) for mast cell driven diseases, plans to offer shares of common stock or pre-funded warrants with accompanying common warrants to purchase shares. With a current market capitalization of just $42.1 million, InvestingPro analysis indicates the company is burning through cash quickly while maintaining more cash than debt on its balance sheet.
Proceeds from the offering will fund the continued development of briquilimab in treating conditions such as chronic spontaneous urticaria, chronic inducible urticaria, and asthma. The company also intends to use funds for general corporate purposes, including capital expenditures and administrative expenses. This funding push comes as InvestingPro’s Fair Value analysis suggests the stock may be undervalued, despite the company’s weak financial health score and negative EBITDA of -$92.7 million in the last twelve months.
TD Cowen is serving as the sole book-running manager for the proposed offering. The securities will be offered through an effective shelf registration statement filed with the Securities and Exchange Commission in March 2025.
Jasper’s briquilimab is an aglycosylated monoclonal antibody designed to block stem cell factor from binding to the KIT receptor, disrupting signals that support mast cell survival. The company reports the therapy has demonstrated efficacy and safety in patients and healthy volunteers.
The offering’s completion, size, and terms remain subject to market conditions, with no guarantee of proceeding as planned, according to the company’s press release statement. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 15 additional ProTips and a detailed research report covering Jasper Therapeutics’ financial health, market position, and growth prospects.
In other recent news, Jasper Therapeutics announced a public offering of common stock and warrants, intending to use the proceeds to advance the development of briquilimab for mast cell-driven diseases. This comes amid a corporate reorganization where the company plans to cut approximately 50% of its workforce to focus on developing treatments for chronic urticaria. Chief Medical Officer Edwin Tucker will depart, with Daniel Adelman stepping in as Acting Chief Medical Officer. Despite these changes, BTIG has reiterated its Buy rating with a $20 price target on Jasper Therapeutics, following the company’s second-quarter earnings report. JMP Securities also maintained its Market Outperform rating with a $12 price target, despite a setback in the company’s CSU clinical trial program. The firm attributed the issue to a "bad drug lot" but remains optimistic about briquilimab’s performance. Jasper is extending its cash runway to reach critical BEACON CSU data expected by year-end. The company’s recent developments indicate a strategic shift towards focusing on its most promising therapeutic areas.
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