BUZZ-Prime Medicine shares fall due to $125 million stock offering

November 11 - ** Shares of gene-editing biotechnology company Prime Medicine (PRME.O) fell 2.1% before the open on Wednesday to $3.82, after the company overnight priced and completed a $125 million follow-on offering

** PRME, headquartered in Cambridge, Massachusetts, sold approximately 35.7 million shares at $3.50 each late Tuesday (link), which is a 10.3% discount to the last trading price

** According to the prospectus, the company plans to use the net proceeds primarily to support its Wilson’s disease and alpha-1 antitrypsin deficiency (AATD) programs and R&D, with the remainder for working capital, capital expenditures, and general corporate purposes (link)

** Jefferies, TD Cowen, and Goldman Sachs served as joint bookrunners

** PRME has about 181.4 million shares outstanding

** Shares dropped 9.3% on Tuesday, reducing the year-to-date gain to about 12%; the stock is up about 20% in the past three months

** According to LSEG data, 11 out of 14 analysts rate the stock as a “strong buy” or “buy,” and 3 rate it as “hold”; the median price target is $8

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