Tag Archives: Brinson Patrick

Brinson Patrick Reports a Record $90 Million Raised by Life Sciences Companies Through At-the-Market (ATM) Offerings in the First Quarter

Brinson Patrick, a boutique investment bank that specializes in at-the-market (ATM) offerings, reported last week that a record $90 million was raised by life science companies through ATM offerings in the first quarter of this year. Raised through 20 ATM offerings, this dollar amount represents the highest single-quarter usage of ATMs by companies in the healthcare industry segment.

This amount represents a 36% increase in funds raised through ATMs compared to the first quarter of 2011. Life sciences companies that utilized ATMs to raise capital in the first quarter included Threshold Pharmaceuticals Inc., Cerus Corp., Celldex Therapeutics Inc. and Avanir Pharmaceuticals Inc.

An ATM provides an efficient means of raising equity capital over time by enabling a publicly traded company to tap into the existing secondary market for its shares on an as-needed basis. With an ATM, the company incrementally sells newly issued shares into the trading market through a designated broker-dealer at prevailing market prices, rather than through a traditional underwritten offering of a fixed number of shares at a fixed price all at once. This allows capital to be raised incrementally over time, an idea option for raising general working capital, funding specific projects, funding research and development and/or paying off debt.

Russo Partners is currently working with Brinson Patrick to raise awareness of the benefits of ATMs for public companies. In order to highlight the increasing use of ATMs, we have worked with Brinson Patrick to publish data each quarter about ATM offerings that the company collects for internal use, and this strategy has effectively generated media interest.

Read more about Brinson Patrick and the increasing use of ATMs by life sciences companies to raise capital in the following article from the San Diego Business Journal:

San Diego Business Journal

BIO Investor Forum: Supporting Our Clients’ Participation as Panelists, Presenters

Last  week took us to San Francisco for the 10th Annual BIO Investor Forum, an investor conference focused on private and emerging public biotech companies. Multiple clients were involved in the conference either as presenters or panel participants discussing key issues affecting the biotechnology industry. Russo Partners was there to support their activities.

Clients participating on panels included Sutro Biopharma and GlobeImmune. William Newell, chief executive officer of Sutro Biopharma, a company with a biochemical protein synthesis technology platform enabling the design and development of novel proteins that previously have been inaccessible or difficult to produce, provided insight into the future of biosimilars and development strategies on the panel titled Biologics: Billions from BioBetters?

On another panel titled Immunotherapy: Heal Thyself, Timothy Rodell, M.D., president and chief executive officer of GlobeImmune, a company developing therapeutic vaccines for cancer and infectious diseases, discussed the promising future of immunotherapies.

Our clients Anaphore and Flexion Therapeutics also participated in the conference as presenting companies. Brinson Patrick Securities also took advantage of this conference for onsite networking and media opportunities.

At a rich networking event such as BIO Investor Forum, Russo Partners works to maximize our clients’ time spent at the conference by connecting the company executives to key members of the life sciences community.

We look forward to preparing our clients to deliver their “stories” at the next industry event.

Raising Awareness of At-The-Market Offerings

What is an at-the-market offering, or ATM? How does it work? How is it beneficial?

Those are the types of questions that Brinson Patrick Securities had heard many times before the investment bank began working with Russo Partners.

While at-the-market (ATM) financing vehicles are an important and efficient way to raise capital over time for a publically traded company, there was not broad awareness of this alternative method of financing in the healthcare business community.

After a detailed analysis of the company and the situation, Russo Partners’ recommended that Brinson Patrick publicize data that quantify the amount of funding raised by life science companies through ATMs on a quarterly basis in the form of a news release. In fact, this data was already collected by Brinson Patrick for internal use, so the exercise proved to be an efficient re-appropriation of already available resources.

Armed with the first quarter news release, Russo Partners reached out to specific media targets at financial publications covering this space. Russo Partners succeeded in securing multiple high-profile opportunities for the company, and, through this process, was able to build awareness of ATMs among members of the media and the healthcare community at large.

On Monday, Brinson Patrick distributed its second news release on the amount of capital raised by life sciences companies through the use of ATM offerings during the second quarter, with the intent to replicate the past media success.

Below are links to the second quarter news release, as well as examples of key coverage we were able to generate with the first quarter news release:

Second Quarter News Release

The Wall Street Journal

The Deal

Xconomy

MedCity News