Adaptimmune Therapeutics PLC- ADR (NASDAQ:ADAP) Announces Share Offering

Adaptimmune Therapeutics PLC- ADR (NASDAQ:ADAP)

Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP) has priced out its ADR share offering. Citigroup Global Markets Inc., Cowen and Company, LLC, and Leerink Partners LLC will serve as the underwriters. Under the published terms of the deal Adaptimmune will sell an aggregate of 14,300,000 of its American Depositary Receipts (ADRs) to the underwriters. Each ADR represents six ordinary shares of Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP). The ADRs will each be sold at a public offering price of $4.20. Adaptimmune expects to receive aggregate net proceeds of approximately $56.3 million before expenses. Pursuant to the Underwriting Agreement, Adaptimmune also granted the underwriters a 30-day option to purchase up to 2,145,000 additional ADRs at $4.20.

Philadelphia, PA-based Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP) develops T-cell therapies to treat cancers. Created in 1993, Adaptimmune has developed a T-cell engineering platform named SPEAR “Specific Peptide Engineered Affinity Receptor”. The SPEAR therapy is designed to harness the body’s own immune system to find and eradicate cancerous cells. Adaptimmune has a collaboration and licensing agreement with GSK for several of its drugs in development.

SPEAR T-cell therapies targeting NY-ESO, MAGE-A10, MAGE-A4 and AFP are progressing into and through clinical studies in multiple U.S. clinical sites. In addition, Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP)  has identified over 30 intracellular target peptides preferentially expressed in cancer cells and the company is currently progressing 12 through un-partnered research programs.

Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP) has never experienced profitable EPS. In 2012 they reported a loss of -$0.08. That loss has expanded each year and in 2015 the EPS loss was -$0.30. However sales have been increasing YoY since 2013 when Adaptimmune posted sales of $400,000. And in 2015 that sales figure was $9 million. Outstanding shares have remained relatively stable, prior to today’s announcement. In 2012 there were 70.79 million shares outstanding. That number grew to just 76.67 million in 2015.

There is a wide variety of analyst ratings on ADAP. Six firms follow Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP). Three rate ADAP shares as a “Strong Buy” the remaining three each rate the shares either as a “Buy”, “Hold”, or “Sell”. Their consensus price target is $12.50.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.