SAN DIEGO - Travere Therapeutics, Inc. (NASDAQ:TVTX), a biopharmaceutical company focused on treatments for rare diseases, announced its intention to conduct an underwritten public offering of its common stock. The company will also provide underwriters a 30-day option to purchase up to an additional 15% of the shares offered. The completion, timing, and size of the offering are subject to market and other conditions, and there is no guarantee of the offering's terms or its execution.
The offering is being managed by Jefferies and Leerink Partners as joint book-running managers. The shares are being offered pursuant to an automatic shelf registration statement that was filed with the Securities and Exchange Commission (SEC) and became effective on August 1, 2024. A preliminary prospectus supplement related to the offering is expected to be filed with the SEC and will be available on their website.
Travere emphasizes that this press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such state or jurisdiction.
The company, which dedicates itself to identifying, developing, and delivering life-changing therapies for patients with rare diseases, has not disclosed specific details regarding the use of proceeds from the offering. Travere's mission is to provide urgent treatment options and to continuously engage with the rare disease community to understand their needs and perspectives.
This announcement includes forward-looking statements, which are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could affect the proposed offering include market conditions and the satisfaction of customary closing conditions.
The information in this article is based on a press release statement from Travere Therapeutics, Inc.
In other recent news, Travere Therapeutics has reported significant growth in the third quarter of 2024, primarily driven by the commercial launch of its drug FILSPARI for IgA nephropathy. The drug's full approval led to a 30% increase in net sales from the previous quarter, with net product sales reaching $35.6 million. Total (EPA:TTEF) revenue for the quarter rose to $62.9 million, marking a 69% increase from the same period in 2023. However, the company also reported a net loss of $54.8 million, which it attributes to the one-time gain from a product sale in the previous year.
Travere is making progress in its sparsentan program for Focal Segmental Glomerulosclerosis, with promising study results and upcoming regulatory discussions. The company also submitted an sNDA to the FDA to modify liver monitoring frequency for FILSPARI. Despite the net loss, Travere maintains a strong cash position of $277.4 million.
These recent developments indicate Travere's continued commitment to its growth strategies, particularly around FILSPARI and sparsentan. The company is optimistic about FILSPARI becoming a foundational treatment in IgAN and is preparing for regulatory discussions on sparsentan for FSGS.
InvestingPro Insights
Travere Therapeutics' decision to conduct a public offering comes at a time of significant financial dynamics for the company. According to InvestingPro data, Travere has experienced strong growth, with revenue increasing by 57.08% over the last twelve months to $203.45 million. This growth trajectory is further emphasized by a remarkable 69.56% quarterly revenue growth in Q3 2024.
Despite these positive revenue trends, InvestingPro Tips highlight that Travere is "quickly burning through cash" and is "not profitable over the last twelve months." This context sheds light on the company's potential motivations for the public offering, as it may be seeking to bolster its financial position to support ongoing operations and development efforts in the competitive rare disease therapeutics market.
The company's market performance has been notably strong, with InvestingPro data showing a 140.95% price total return over the past year and a 156.3% return over the last six months. This positive momentum could potentially contribute to favorable conditions for the proposed public offering.
Investors considering Travere's offering should note that InvestingPro Tips indicate the company "operates with a moderate level of debt" and "suffers from weak gross profit margins." These factors, along with the fact that "analysts do not anticipate the company will be profitable this year," provide important context for evaluating the potential risks and opportunities associated with the offering.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Travere Therapeutics, providing a deeper understanding of the company's financial health and market position.
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