This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
The total offer consists of approximately 2.7 million shares to be issued at a price of $26.64 per share (the closing price on Jan 10, 2012). In addition, the company has also offered the underwriter a 30-day option to purchase up to 405,710 shares. The net funds from this offering are expected to be approximately $67.9 million.
These funds will be used for the commercialization of Aegerion’s recently approved Juxtapid. Juxtapid, which gained US Food and Drug Administration (FDA) approval in Dec 2012, has been approved for the treatment of patients suffering from homozygous familial hypercholesterolemia (HoFH) as an adjunct to a low-fat diet and other lipid-lowering therapies.
In addition to using the funds for Juxtapid’s commercial launch in the US, Aegerion intends to utilize the money for EU approval and subsequent commercialization, expansion in other countries to support the approval of Juxtapid, additional development of Juxtapid and business development activities.
Cash and cash equivalents at the end of 2012 were roughly in the range of $78 million to $83 million.
Neutral on Aegerion
We are encouraged by the US approval of Juxtapid. The company recently provided guidance for 2013. For 2013, Aegerion expects to generate revenue between $15 million and $25 million assuming 250 to 300 patients are on Juxtapid therapy by the end of the year.
Once Juxtapid is approved in the EU, the company expects to achieve an annualized worldwide net revenues run rate of $100 million eighteen months after EU approval. The company also expects to achieve cash flow breakeven from operations eighteen months after EU approval.
Please login to Zacks.com or register to post a comment.