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CST: 16/09/2019 21:26:25   

Krystal Biotech Announces Pricing of $100.0 Million Public Offering of Common Stock

84 Days ago

PITTSBURGH, June 24, 2019 (GLOBE NEWSWIRE) -- Krystal Biotech, Inc. (Nasdaq: KRYS) (the “Company”), a gene therapy company dedicated to developing and commercializing novel treatments for patients suffering from dermatological diseases, today announced that it has priced the previously announced underwritten public offering of 2,500,000 shares of its common stock, at a public offering price of $40.00 per share. The Company granted the underwriters a 30-day option to purchase up to an additional 375,000 shares of its common stock. The gross proceeds to the Company from this offering are expected to be approximately $100.0 million, before deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company. The offering is expected to close on or about June 27, 2019. The offering is subject to market and other conditions, and there can be no assurances as to whether or when the offering may be completed.

Goldman Sachs & Co. LLC and Cowen are acting as joint book-running managers for the offering. William Blair is acting as lead manager for the offering, and Chardan, H.C. Wainwright & Co. and Ladenburg Thalmann are acting as co-managers for the offering.

The Company currently intends to use the net proceeds from this offering, together with its existing cash, cash equivalents and short-term investments: (i) to advance KB103 into and through a Phase 3 clinical trial; (ii) to advance the pre-clinical and clinical development of KB105; (iii) to complete development of a good manufacturing practices certified manufacturing facility for scale-up production of our pipeline compounds and commencement of operations of that facility; and (iv) the balance for working capital and general corporate purposes, including research and development expenses and capital expenditures.

The offering is being made pursuant to a “shelf” registration statement on Form S-3 (File No. 333-227632) that was originally filed with the Securities and Exchange Commission (“SEC”) on October 1, 2018 and declared effective by the SEC on October 12, 2018. A preliminary prospectus supplement relating to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website at http://www.sec.gov. A final prospectus supplement and the accompanying base prospectus relating to the offering and the shares of common stock being offered will be filed with the SEC. Copies of the registration statement, the final prospectus supplement and the accompanying base prospectus may be obtained on the SEC’s website at http://www.sec.gov or, when available, by contacting: Goldman Sachs & Co. LLC, at Prospectus Department, 200 West Street, New York, New York 10282, by telephone at 866-471-2526, by facsimile at 212-902-9316 or by e-mail at prospectusgroup-ny@ny.email.gs.com or Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Attn: Prospectus Department, or by email at PostSaleManualRequests@broadridge.com.

This announcement is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy any securities of the Company, which is made only by means of a prospectus supplement and related base prospectus, nor will there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. 

About Krystal Biotech

Krystal Biotech, Inc. (Nasdaq: KRYS) is a gene therapy company dedicated to developing and commercializing novel treatments for patients suffering from dermatological diseases.

Forward-Looking Statements

This press release contains forward-looking statements and information, including with respect to the offering and the intended use of the proceeds of the offering. The use of words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “future,” “potential,” or “continue,” and other similar expressions are intended to identify forward-looking statements. Although the Company’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, among others: whether or not we will be able to raise capital through the sale of shares of common stock or consummate the offering, the Company’s ability to satisfy the closing conditions of the offering, the timing or occurrence of the closing, prevailing market conditions, the anticipated use of the proceeds of the offering, which could change as a result of market conditions or for other reasons, and those other risks detailed from time to time under the caption “Risk Factors” and elsewhere in the Company’s SEC filings included in its Annual Report on Form on Form 10-K for the year ended December 31, 2018, and in future filings and reports of the Company. The Company undertakes no duty or obligation to update any forward-looking statements contained herein as a result of new information, future events or changes in its expectations or circumstances.

INVESTOR CONTACT
Ashley R. Robinson
LifeSci Advisors
arr@lifesciadvisors.com

MEDIA CONTACT
Darren Opland, PhD
LifeSci Public Relations
darren@lifescipublicrelations.com 

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