IDEAYA Biosciences Inc. (IDYA) shares were last seen trading down -9.20% at $20.63 during after-hours trading. IDEAYA closed the last trading session at $22.72, up 2.99% or $0.66. IDYA stock traded between $21.56 and $22.83. There were 0.13 million shares exchanged, compared to IDYA’s average daily volume of 0.15 million over the last 50 days and 0.19 million in its Year-to-date volume. The IDYA stock has plummeted following the announcement of its planned public offering.

What is IDYA’s offering?

IDEAYA is a precision medicine oncology company committed to discovering and developing targeted therapeutics based on molecular diagnostics for molecular diagnostics-selected patient populations. Identification and validation of translational biomarkers by IDYA are essential to the development of targeted therapies for select patient populations who are most likely to benefit. In many ways, IDYA is taking advantage of its capabilities to build a robust oncology pipeline, focusing on synthetic lethality, which represents an emerging class of precision medicine targets.

In an underwritten public offering, IDEAYA plans to offer and sell shares of its common stock worth up to $80 million. As well, IDYA intends to offer the underwriters an option to purchase up to $12 million of its common stock within 30 days of the offering.

A portion of the net proceeds from the offering will be used to supplement IDYA’s existing cash and cash equivalents, as well as short- and long-term marketable securities.

What IDYA further plans to do with the proceeds:

• IDYA plans to use the proceeds to support the clinical development of its MAT2A inhibitor development candidate, IDE397.
• Furthermore, IDYA could also utilize the proceeds to fund preclinical and clinical development of other product candidates in its pipeline aimed at preventing PARG, DNA damage, and WRN according to the existing Collaboration, Option and License Agreement between the Company and GSK.
• IDYA could utilize the proceeds to finance its ongoing early clinical development of darovasertib in metastatic uveal melanoma and other solid tumors having GNAQ/11 hotspot mutations, including as monotherapy and as combination therapies with binimetinib, and independently with crizotinib, in each case pursuant to a clinical trial and drug supply agreement with Pfizer.
• IDYA plans to also use the proceeds for its synthetic lethality target and biomarker research initiatives.
• IDYA could also use the proceeds it has been getting for working capital and other general corporate purposes.

The book runners for IDYA offering:

IDEAYA’s (IDYA) offering is highly subject to market conditions, and it cannot provide any assurances as to the timing or size of the offering or how it will affect the company’s financial condition. IDYA’s offering is being managed jointly by J.P. Morgan, Jefferies, Guggenheim Securities, and Citigroup.