Outlook Therapeutics announces public stock offering

ISELIN, N.J. - Outlook Therapeutics, Inc. (NASDAQ:OTLK) has launched a public offering of its common stock and accompanying warrants, the company announced today. The biopharmaceutical firm, which focuses on the development of treatments for retinal diseases, has not yet disclosed the offering’s size or terms, stating that completion is subject to market conditions. According to InvestingPro data, the company currently has a market capitalization of $54.38 million and faces liquidity challenges with short-term obligations exceeding liquid assets.

The proceeds from this offering are earmarked for general corporate purposes and working capital, according to the company. BTIG, LLC has been named as the sole book-running manager for the transaction. The funding comes at a crucial time, as InvestingPro analysis shows the company’s current ratio at 0.72 and negative EBITDA of $76.32 million in the last twelve months.

The securities are offered under a shelf registration statement that was declared effective by the Securities and Exchange Commission (SEC) on April 5, 2024. Outlook Therapeutics plans to file a preliminary prospectus supplement and accompanying prospectus with the SEC, which will be accessible on the SEC’s website.

Outlook Therapeutics is recognized for its work on ONS-5010/LYTENAVA™ (bevacizumab-vikg; bevacizumab gamma), aiming to enhance the standard of care for bevacizumab in treating retina diseases. LYTENAVA™ has received marketing authorization in the European Union and the United Kingdom for wet age-related macular degeneration (wet AMD), and the company is preparing for its commercial launch in these regions in the second quarter of 2025.

In the United States, ONS-5010/LYTENAVA™ is currently investigational, with a resubmitted Biologics License Application to the U.S. Food and Drug Administration. If approved, it would become the first ophthalmic formulation of bevacizumab approved for retinal indications, including wet AMD. Despite the stock’s significant decline of nearly 80% over the past year, analyst price targets range from $3 to $24, suggesting potential upside. Get more detailed analysis and 8 additional key insights with InvestingPro.

The announcement of the public offering contains forward-looking statements, including the company’s intentions regarding the offering, anticipated regulatory outcomes, and plans for product launches. These statements are subject to risks and uncertainties that could affect the actual outcomes, including market conditions, regulatory decisions, and financial resources.

This news is based on a press release statement and reflects the company’s current expectations and projections about future events, which are inherently subject to change.

In other recent news, Outlook Therapeutics has resubmitted its Biologics License Application (BLA) for ONS-5010 to the U.S. Food and Drug Administration (FDA). The FDA has accepted the resubmission and set a Prescription Drug User Fee Act (PDUFA) goal date of August 27, 2025, for its review. This development is significant as ONS-5010 could potentially become the first FDA-approved ophthalmic formulation of bevacizumab for treating wet age-related macular degeneration. Guggenheim analysts have maintained a Buy rating on Outlook Therapeutics, with a price target of $10, indicating confidence in the company’s prospects. The analysts suggest that the complexity of the off-label compounded bevacizumab market could enhance the likelihood of ONS-5010’s approval. Additionally, Outlook Therapeutics plans to launch ONS-5010 in the UK and Germany in the second quarter of 2025. In corporate updates, the company has increased its authorized common stock from 60 million to 260 million shares, aiming for greater financial flexibility. The stockholders also approved the issuance of more than 19.99% of the company’s outstanding common stock upon the conversion of a convertible promissory note.

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