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RESEARCH TRIANGLE PARK, N.C. - Opus Genetics, Inc. (NASDAQ:IRD), a clinical-stage biotechnology firm specializing in gene therapy for inherited retinal diseases, has disclosed the pricing of a $20 million underwritten public offering and a concurrent $1.5 million private placement. The company, currently valued at $36.3 million, has demonstrated strong financial health with a current ratio of 6.63, according to InvestingPro data. The offerings are anticipated to close on March 24, 2025, contingent upon customary closing conditions.
The public offering, led by Perceptive Advisors and Nantahala Capital, includes other new institutional biotech investors, with Opus CEO George Magrath and board chairman Cam Gallagher participating in the private placement. The stock has shown significant momentum, gaining over 23% in the past week and demonstrating strong performance over the last three months, as revealed by InvestingPro analysis. The company aims to allocate the net proceeds towards advancing its leading gene therapy programs, OPGx-LCA5 and OPGx-BEST1, in addition to general corporate purposes and working capital. InvestingPro data shows the company maintains a strong balance sheet with more cash than debt, positioning it well for these development initiatives. Subscribers to InvestingPro can access 8 additional key financial insights about Opus Genetics’ financial position and growth prospects.
Opus Genetics has offered over 21 million shares of common stock, or equivalents, and warrants in the public offering, priced at $0.95 each. The concurrent private placement consists of approximately 1.2 million shares of common stock and warrants, with an offering price of $1.275. The warrants in both offerings are exercisable immediately upon issuance and may be called by the company under certain conditions.
The potential full exercise of the warrants could yield an additional $21.4 million, bringing the total possible gross proceeds to approximately $43 million. Craig-Hallum Capital Group LLC is serving as the sole managing underwriter for the public offering.
Opus Genetics’ pipeline includes investigational gene therapies targeting various forms of inherited retinal diseases, with its most advanced program addressing mutations in the LCA5 gene. While the company reported an EBITDA of -$29.47 million in the last twelve months, analysts maintain optimistic price targets ranging from $8 to $15 per share, significantly above the current trading price of $1.15. The company also has other ophthalmic solutions in development, such as Phentolamine Ophthalmic Solution 0.75% and APX3330, targeting different aspects of eye health.
The shares and warrants being issued in the private placement have not been registered under the Securities Act of 1933 and are subject to restrictions on resale in the United States. The offerings are made through a shelf registration statement filed with the SEC and declared effective on January 23, 2024.
This news is based on a press release statement from Opus Genetics, Inc.
In other recent news, Opus Genetics reported an anticipated net loss of approximately $56.8 million for the year ending December 31, 2024. The company also revealed that its net cash used in operating activities was about $25.6 million, with cash and cash equivalents estimated at roughly $30.3 million. These figures are preliminary and subject to final adjustments. In a strategic move to protect its intellectual property, Opus Genetics, in collaboration with FamyGen Life Sciences, filed a patent infringement lawsuit against Sandoz Inc., aiming to prevent the marketing of a generic version of their drug, RYZUMVI™. Additionally, the company received a Paragraph IV Certification Notice from Sandoz, challenging the validity of six patents related to RYZUMVI™. On the corporate governance front, Opus Genetics enhanced shareholder rights by amending its bylaws, allowing greater flexibility for stockholders. The company also granted stock options to new employees, totaling 205,742 shares, as part of their employment package. Furthermore, Opus Genetics completed enrollment for its VEGA-3 Phase 3 trial for Phentolamine Ophthalmic Solution 0.75%, which has received Fast Track designation from the FDA.
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