Krystal Biotech Announces $160 Million Private Placement Equity Financing
May 22 2023 - 7:00AM
Krystal Biotech, Inc. (the Company) (NASDAQ: KRYS), a biotechnology
company focused on developing and commercializing genetic medicines
for patients with rare diseases, today announced that it has
entered into a securities purchase agreement for the sale of
1,729,729 shares of its common stock at $92.50 per share in a
private placement (the PIPE) to certain qualified institutional
buyers. Gross proceeds from the PIPE are expected to be
approximately $160 million, before deducting any offering-related
expenses. The transaction is expected to close on May 22, 2023,
subject to the satisfaction of customary closing conditions.
The PIPE financing was led by Avoro Capital Advisors and Redmile
Group, LLC with participation from Braidwell LP and Frazier Life
Sciences.
“We are extremely pleased to have the support of this strong
investor group,” said Krish S Krishnan, Chairman and CEO of
Krystal Biotech, Inc. “These additional funds, together with our
existing cash, cash equivalents and investments, should allow us to
fund the VYJUVEK launch, future operations, and the advancement of
our growing pipeline through the end of 2026. It also allows us to
retain the optionality of monetizing the Priority Review Voucher we
received in connection with the FDA approval of VYJUVEK at a future
date with favorable terms and without any dilution.”
The securities being issued and sold in the PIPE have not been
registered under the Securities Act of 1933, as amended (the
“Securities Act”), or the securities laws of any state, and may not
be offered or sold in the United States, except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act. The Company
has agreed to file a registration statement with the Securities and
Exchange Commission registering the resale of the shares of common
stock issued in this PIPE within 60 days of closing.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such state or jurisdiction.
About Krystal Biotech, Inc.Krystal
Biotech, Inc. (NASDAQ: KRYS) is a biotechnology company
focused on developing and commercializing genetic medicines for
patients with rare diseases. The Company’s wide-ranging pipeline is
based on its proprietary redosable HSV vector.
In May 2023, VYJUVEK™ was approved by the US Food and Drug
Administration (FDA) for the treatment of dystrophic epidermolysis
bullosa (DEB). VYJUVEK is a non-invasive, topical, redosable gene
therapy designed to treat DEB at the molecular level.
Headquartered in Pittsburgh, Pennsylvania, the Company is
led by an experienced management team, is fully-integrated, and has
core capabilities in viral vector design, vector optimization, gene
therapy manufacturing, and commercialization.
For more information, please
visit http://www.krystalbio.com, and follow @KrystalBiotech
on LinkedIn and Twitter.
Forward Looking StatementsAny statements in
this press release about future expectations, plans and prospects
for the Company including statements that the additional funds from
the private placement, together with existing cash, cash
equivalents and investments, should allow the Company to fund the
VYJUVEK launch, future operations, and the advancement of the
Company’s growing pipeline through the end of 2026, and statements
regarding the potential monetization of the Priority Review
Voucher. The use of the words such as “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may,” “plan,” “predict,”
“project,” “target,” “potential,” “likely,” “will,” “would,”
“could,” “should,” “continue,” and similar expressions, are
intended to identify forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by such
forward-looking statements as a result of various important
factors, including uncertainties associated with regulatory
applications for marketing approvals, and such other important
factors as are set forth under the caption “Risk Factors” in the
Company’s annual and quarterly reports on file with the U.S.
Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the Company’s views as of the date of this release. The Company
anticipates that subsequent events and developments will cause its
views to change. However, while the Company may elect to update
these forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the
date of this press release.
CONTACT:Investors and
Media:Meg DodgeKrystal Biotechmdodge@krystalbio.com
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