Street Calls of the Week
Apogee Therapeutics, Inc. (NASDAQ:APGE), a biotech company with a market capitalization of $3.12 billion, announced Friday it has entered into an underwriting agreement to issue and sell 6,951,221 shares of its common stock at a public offering price of $41.00 per share. The stock, which has surged 33% in the past week, is currently trading above InvestingPro’s Fair Value estimate. In addition, the company is offering pre-funded warrants to purchase 365,853 shares of common stock at a price of $40.99999 per warrant. The offering also granted underwriters a 30-day option to purchase up to an additional 1,097,561 shares at the public offering price, which was exercised in full on Thursday.
The net proceeds from the offering, including the underwriters’ option, are expected to be approximately $323.3 million after deducting underwriting discounts, commissions, and estimated offering expenses. The offering is expected to close Friday.
The securities were offered under a shelf registration statement that became effective on August 12, 2024. The company agreed to indemnify the underwriters against certain liabilities, including those under the Securities Act of 1933.
According to the statement, the pre-funded warrants will be exercisable at any time after issuance. Holders may not exercise the warrants if it would result in beneficial ownership of more than 4.99% or 9.99% of Apogee’s outstanding common stock, with the possibility to increase or decrease this limit to up to 19.99% by providing 61 days’ notice.
With analyst price targets ranging from $60 to $116 per share, Apogee also provided updates regarding its clinical trials. The company has increased the expected patient population in the Part B portion of its APEX Phase 2 trial of APG777 in atopic dermatitis to 320 patients and expects to complete enrollment by the end of the year. For more detailed financial analysis and 13 additional ProTips, visit InvestingPro. Topline maintenance data from Part A is expected in the first quarter of 2026, and 16-week induction data from Part B in the second quarter of 2026. Topline data from the Phase 1b trial of APG777 in asthma is anticipated in the first quarter of 2026.
This information is based on a statement made in a press release filed with the U.S. Securities and Exchange Commission.
In other recent news, Apogee Therapeutics announced a public offering of 6,951,221 common shares priced at $41.00 per share, totaling $300 million. The offering also includes pre-funded warrants for certain investors, exercisable immediately at a nominal price. This development follows the company’s earlier announcement of the proposed offering, which led to a 10% drop in its stock. Apogee has granted underwriters a 30-day option to purchase an additional 15% of shares at the public offering price, excluding underwriting discounts and commissions.
In analyst updates, RBC Capital initiated coverage on Apogee Therapeutics with an Outperform rating and set a price target of $60.00. RBC Capital highlighted the company’s promising data from its early clinical trials and Phase II studies. Meanwhile, Goldman Sachs reiterated its Early-Stage Biotech rating for Apogee following the company’s second-quarter earnings report. Apogee has updated its timeline for its respiratory portfolio, expecting Phase 1 data for its anti-TSLP candidate APG333 in the fourth quarter and Phase 1b data for its anti-IL13 candidate APG777 in early 2026.
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