Savara Inc. (NASDAQ: SVRA) has just announced the pricing of a public offering of its common stock and pre-funded warrants, which is expected to generate total gross proceeds of $130.0 million. The offering consists of 23,809,524 shares of common stock priced at $4.20 per share and pre-funded warrants to purchase 7,142,857 shares of common stock at a price of $4.199 per pre-funded warrant. Additionally, the underwriters have been granted a 30-day option to purchase up to an additional 4,642,857 shares of common stock at the public offering price.
The company plans to utilize the proceeds from the offering for general corporate purposes, including funding clinical development and pursuing regulatory approval for its lead program, molbreevi. This program, a recombinant human granulocyte-macrophage colony-stimulating factor (GM-CSF), is currently in phase 3 development for autoimmune pulmonary alveolar proteinosis (autoimmune PAP). The funds will also be allocated towards investing in commercialization infrastructure and supply, as well as commercial launch preparation activities in the United States and the European Union.
The offering is being managed by Jefferies, Piper Sandler, and Guggenheim Securities as joint book-running managers, with Oppenheimer & Co. acting as the lead manager, and Citizens Capital Markets and H.C. Wainwright & Co. as co-managers. These securities were offered by Savara pursuant to its existing shelf registration statement filed with the Securities and Exchange Commission (SEC) in May 2024 and declared effective later that month.
Savara's management team brings significant experience in rare respiratory diseases and pulmonary medicine, with a focus on identifying unmet needs and advancing product candidates to approval and commercialization. Molbreevi, which is delivered via a proprietary investigational eFlow® nebulizer system, has been conditionally accepted by the FDA and EMA, but is not yet approved in any indication. As a result of these announcements, the company's shares have moved -1.59% on the market, and are now trading at a price of $4.34. If you want to know more, read the company's complete 8-K report here.
