Solid Biosciences sets $200 million stock and warrant offering

CHARLESTOWN, Mass. - Solid Biosciences Inc. (NASDAQ:SLDB), a company specializing in genetic medicines for neuromuscular and cardiac diseases, has announced a significant stock and pre-funded warrant offering. The company is offering 35,739,810 shares of common stock at $4.03 each and pre-funded warrants to purchase 13,888,340 shares at $4.029 per warrant, aiming to raise approximately $200 million before fees and expenses. According to InvestingPro data, the company currently holds more cash than debt on its balance sheet, though it has been rapidly burning through its cash reserves.

The pre-funded warrants, immediately exercisable at $0.001 per share, will remain valid until fully exercised. This offering is being made solely by Solid Biosciences, with an expected closing date on or about February 19, 2025, contingent on standard closing conditions. The stock has shown significant volatility, with InvestingPro analysis indicating a strong 22% return over the past week, despite a challenging six-month period that saw a decline of over 54%.

The capital raise has attracted a mix of new and existing investors, including notable names such as Adage Capital Partners (WA:CPAP), Bain Capital Life Sciences, and RA Capital Management. Joint book-running managers for the offering are Jefferies, Leerink Partners, and William Blair, with H.C. Wainwright & Co. serving as the lead manager.

The offering is made under a shelf registration statement, effective as of May 17, 2024, filed with the Securities and Exchange Commission (SEC). A final prospectus supplement related to the offering will be filed with the SEC.

Solid Biosciences is advancing a diverse pipeline of gene therapy candidates targeting rare diseases like Duchenne muscular dystrophy and various genetic cardiac conditions. The company is also developing technologies to enhance gene therapy delivery across the industry.

Investors can obtain copies of the prospectus supplement, once available, from the offices of Jefferies, Leerink Partners, and William Blair.

This financial move comes with the usual caution that forward-looking statements involve risks and uncertainties, and actual events could differ materially. The company's quarterly filings with the SEC provide further details on these risks. Notably, InvestingPro data shows that analysts have recently revised their earnings expectations downward, with the company's next earnings report expected on March 14, 2025. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, covering this and over 1,400 other US equities.

This news article is based on a press release statement from Solid Biosciences Inc.

In other recent news, Solid Biosciences has been making significant strides in the biotechnology sector. JMP Securities has maintained their Market Outperform rating on the company, with a steady price target of $15.00, highlighting the progress in the INSPIRE DUCHENNE trial evaluating SGT-003, a gene therapy for Duchenne Muscular Dystrophy (DMD). The firm expects initial safety, expression, and 90-day biomarker data from the trial within the first quarter of 2025.

Additionally, the U.S. Food and Drug Administration (FDA) has granted Solid Biosciences Fast Track designation for its gene therapy candidate SGT-212, aimed at treating Friedreich's ataxia (FA), a serious genetic neurodegenerative disease. This follows the FDA's approval of the company's Investigational New Drug (IND) application for SGT-212.

Truist Securities has also initiated coverage on Solid Biosciences, assigning a Buy rating and a price target of $16.00 per share. The firm noted the potential upside for Solid Biosciences with the first-in-human look from the ongoing Phase 1/2 study of SGT-003 in DMD expected in the first quarter of 2025. Lastly, JMP Securities has recognized Solid Biosciences as a leader in gene therapy, particularly noting its expertise in transgene optimization and advanced capsids, initiating coverage with a Market Outperform rating and a price target set to $15.00.

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