Milestone Pharmaceuticals prices $52.5 million public offering

MONTREAL/CHARLOTTE - Milestone Pharmaceuticals Inc. (NASDAQ:MIST), a biopharmaceutical company with a market capitalization of $118 million, has priced its previously announced underwritten public offering at $1.50 per share, expected to raise approximately $52.5 million before expenses, according to a press release issued Friday. According to InvestingPro data, the company’s stock has shown strong momentum, delivering a 70% return over the past year.

The offering consists of 31.5 million common shares with accompanying Series A and Series B common warrants, plus pre-funded warrants for certain investors. Each share and warrant combination is priced at $1.50, while the pre-funded warrant package is priced at $1.499.

The biopharmaceutical company, which focuses on developing cardiovascular medicines, plans to use the proceeds to fund clinical development and commercial launch of etripamil for paroxysmal supraventricular tachycardia (PSVT), as well as for working capital and general corporate purposes. While InvestingPro analysis shows the company maintains a healthy current ratio of 4.67 and operates with moderate debt, it’s currently burning through cash - making this capital raise crucial for its operations.

TD Cowen, Piper Sandler & Co. and Wells Fargo Securities are serving as joint book-running managers for the offering, with H.C. Wainwright & Co. acting as lead manager.

The offering is expected to close around Monday, July 14, subject to customary closing conditions.

Milestone recently submitted a New Drug Application to the U.S. Food and Drug Administration for etripamil for the treatment of PSVT, an abnormal heart rhythm condition. Analyst price targets for the stock range from $1 to $5, reflecting varied expectations about the company’s prospects. Get deeper insights and access to 12 additional ProTips with InvestingPro.

The securities are being offered pursuant to a shelf registration statement that was declared effective by the SEC in November 2024.

In other recent news, Milestone Pharmaceuticals announced an underwritten public offering of common shares and warrants, aiming to raise funds for the clinical development and commercial launch of its lead drug candidate, etripamil, for paroxysmal supraventricular tachycardia (PSVT). The offering includes common shares, Series A and Series B warrants, and pre-funded warrants, with TD Cowen, Piper Sandler & Co., and Wells Fargo Securities serving as joint book-running managers. The company plans to use the proceeds to support working capital and general corporate purposes, although the offering is subject to market conditions. Additionally, the U.S. Food and Drug Administration has set a target action date of December 13, 2025, for Milestone’s CARDAMYST nasal spray after accepting the company’s response to a Complete Response Letter. The FDA’s acceptance marks a significant step forward for CARDAMYST, which is being developed as a self-administered treatment for PSVT. In response to the FDA’s feedback, Milestone has addressed issues related to nitrosamine impurities and manufacturing inspections. H.C. Wainwright maintained its buy rating on Milestone stock, highlighting the absence of efficacy or safety concerns in the FDA’s letter. The firm also estimates that CARDAMYST could achieve peak sales exceeding $700 million if approved, based on its potential to reduce emergency room visits for PSVT patients.

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