Crescent Biopharma launches share offering to fund cancer pipeline

What's the deal? Crescent Biopharma (Nasdaq: CBIO), a clinical-stage biotechnology company focused on cancer therapies, has commenced an underwritten public offering of ordinary shares and pre-funded warrants. All shares and warrants in the offering are being sold by Crescent itself. The company is based in Waltham, Massachusetts.

What are the terms? Crescent intends to grant underwriters a 30-day option to buy up to an additional 15% of the ordinary shares at the offering price, less underwriting discounts and commissions. Investors can opt for pre-funded warrants in lieu of ordinary shares.

What could go wrong? The offering depends on market and other conditions. Crescent warned there is "no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms."

The signal: The move marks a quick return to public markets for the recently listed company, a pattern seen among clinical-stage biotechs that tap equity markets to keep drug programs funded through costly trials.

Read more: aktiencheck

Image credit: National Institutes of Health (NIH)