8-KMaterial AgreementsSecurities & ListingOther Events+1

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Material Agreement (May 25, 2017)

Filed May 25, 2017For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) announced on May 25, 2017, through an 8-K filing, the pricing of a public offering of its common stock. The company is set to sell approximately 5 million shares at $71.87 per share, expecting to raise around $355.2 million in net proceeds before considering any potential over-allotment options. This offering is being conducted under a previously filed shelf registration statement and is expected to close on May 30, 2017. Additionally, Alnylam disclosed that Sanofi Genzyme intends to purchase approximately 297,501 shares directly from the company in a private placement at the same public offering price, totaling about $21.4 million. This transaction is in accordance with an existing investor agreement that allows Sanofi Genzyme to maintain its ownership percentage. Investors should note that this capital raise strengthens Alnylam's financial position, potentially funding its ongoing research and development activities and strategic initiatives.

Key Highlights

  • 1Alnylam Pharmaceuticals priced a public offering of 5,000,000 shares of common stock.
  • 2The offering price per share is $71.87.
  • 3The company expects to receive net proceeds of approximately $355.2 million from the offering.
  • 4An option for the underwriter to purchase up to an additional 750,000 shares for over-allotment is available.
  • 5Sanofi Genzyme will purchase 297,501 shares via a private placement for approximately $21.4 million, exercising its 'Offering Right'.
  • 6The offering is conducted under a shelf registration statement and is expected to close on May 30, 2017.
  • 7The filing includes the Underwriting Agreement and a press release announcing the offering's pricing.

Frequently Asked Questions

Alnylam Pharmaceuticals expects to receive approximately $355.2 million in net proceeds from the public offering. Additionally, Sanofi Genzyme will purchase shares for approximately $21.4 million in a private placement, bringing the total capital raised to roughly $376.6 million.

The 8-K filing does not explicitly state the purpose of the offering. However, capital raised from such offerings is typically used to fund research and development, clinical trials, potential acquisitions, general corporate purposes, and to strengthen the company's financial position.

Sanofi Genzyme's purchase of 297,501 shares is made pursuant to an existing investor agreement, allowing them to maintain their ownership percentage in Alnylam. This purchase is a direct private placement at the public offering price, indicating an ongoing strategic relationship and confidence in Alnylam's prospects.

Both the public offering and the private placement to Sanofi Genzyme are expected to close on May 30, 2017, subject to the satisfaction of customary closing conditions.