Legend Biotech falls 4.7% on $225M public share offering

Legend Biotech Corp. shares fell 4.7% in after-hours trading after the company launched a $225 million public offering of American Depositary Shares.

"The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed," the company said in a statement.

Each ADS represents two ordinary shares of the company. Legend Biotech granted underwriters a 30-day option to purchase up to an additional 15% of the shares sold at the public offering price, less underwriting discounts and commissions. Morgan Stanley, Jefferies, Citigroup and Deutsche Bank Securities are serving as joint book-running managers for the offering.

The capital raise comes as Legend Biotech's stock has surged 56% over the past six months, giving the company a market capitalization of $6.23 billion. The offering will dilute existing shareholders but provides capital for the cell therapy company's operations and pipeline development.

Legend Biotech, which employs more than 3,000 people, is the largest standalone cell therapy company. It develops CARVYKTI, a one-time CAR-T cell therapy for relapsed or refractory multiple myeloma, in collaboration with Johnson & Johnson.

The ADSs are being offered under an effective shelf registration statement previously filed with the Securities and Exchange Commission. A preliminary prospectus supplement describing the terms will be filed with the SEC.

The offering gives Legend Biotech capital to fund its cell therapy pipeline and commercial expansion of CARVYKTI. Investors will watch the pricing of the offering and subsequent trading volume to gauge institutional demand.

This article is for informational purposes only and does not constitute investment advice.