SEC Filings

S-1/A
AVEXIS, INC. filed this Form S-1/A on 02/09/2016
Entire Document
 

Table of Contents


USE OF PROCEEDS

          We estimate that the net proceeds from our issuance and sale of 4,250,000 shares of our common stock in this offering will be approximately $76.5 million (or $88.4 million if the underwriters exercise in full their option to purchase additional shares), assuming an initial public offering price of $20.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

          Each $1.00 increase (decrease) in the assumed initial public offering price of $20.00 per share would increase (decrease) the net proceeds to us from this offering by approximately $4.0 million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Each increase (decrease) of 1.0 million in the number of shares we are offering would increase (decrease) the net proceeds to us from this offering, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, by approximately $18.6 million, assuming the assumed initial public offering price stays the same.

          As of December 31, 2015, we estimate that we had cash and cash equivalents of approximately $62 million. We intend to use the net proceeds from this offering, together with our existing cash and cash equivalents, as follows:

    Approximately $45 million to $60 million to fund our ongoing Phase 1 clinical trial and future SMA trials for AVXS-101;

    Approximately $55 million to $70 million to fund our manufacturing activities, including the establishment of our own manufacturing facility, to support our ongoing and future trials for AVXS-101; and

    the balance for other general corporate purposes, including general and administrative expenses and working capital.

          Our independent registered public accountants have not audited, reviewed or performed any procedures with respect to our estimated cash and cash equivalents as of December 31, 2015 and accordingly do not express an opinion or any other form of assurance with respect thereto. This result could change as a result of further review.

          Based on our current operational plans and assumptions, we expect that the net proceeds from this offering, combined with our current cash and cash equivalents, will be sufficient to fund operations through 2017 and enable us to initiate our planned pivotal trials of AVXS-101 for SMA Type 1, which we expect to initiate in the first half of 2017, but that we will need to raise additional capital in order to complete those trials and any potential future trials that may be required by regulatory authorities. Our expected use of net proceeds from this offering represents our current intentions based upon our present plans and business condition. As of the date of this prospectus, we cannot predict with complete certainty all of the particular uses for the net proceeds to be received upon the completion of this offering or the actual amounts that we will spend on the uses set forth above. We believe opportunities may exist from time to time to expand our current business through the acquisition or in-license of complementary product candidates. While we have no current agreements for any specific acquisitions or in-licenses at this time, we may use a portion of the net proceeds for these purposes.

          The amounts and timing of our actual expenditures will depend on numerous factors, including the progress of our clinical trials and other development and commercialization efforts for AVXS-101, as well as the amount of cash used in our operations. We therefore cannot estimate with certainty the amount of net proceeds to be used for the purposes described above. We may find it necessary or advisable to use the net proceeds for other purposes, and we will have broad discretion in the application of the net proceeds. Pending the uses described above, we plan to invest the net proceeds from this offering in short- and intermediate-term, interest-bearing obligations, investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government.

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