TESARO (TSRO) Misses Q4 EPS Views; Announces 4.4M Share Private Placement

TESARO (NASDAQ: TSRO) reported Q4 EPS of ($1.89), $0.26 worse than the analyst estimate of ($1.63).

The company also announced that it has entered into definitive agreements with institutional investors to sell 4.4 million shares of its common stock at $35.19 per share in a private placement, resulting in proceeds of $155 million. The offering price per share of $35.19 is based upon the volume weighted average price of TESARO’s common stock for the ten consecutive trading days ending February 22, 2016.

Existing investors affiliated with InterWest Partners, Kleiner Perkins Caufield and Byers and New Enterprise Associates, in addition to new investors the Australian Government Future Fund and the funds managed by the Ally Bridge Group participated in the offering. The offering was led by Kleiner Perkins and NEA, each of which made an investment of $50 million. The closing of the offering is subject to customary closing conditions, including the expiration or early termination of the waiting period under the Hart-Scott Rodino Act, and is expected to occur by the end of April 2016, but no earlier than March 18, 2016. Proceeds from the financing will primarily be used to support the development of TESARO’s product pipeline and for general corporate purposes. There were no placement agents used for this financing.

“We appreciate the continued support and confidence of InterWest, KPCB and NEA, each of which have been investors and represented on our board of directors for several years,” said Lonnie Moulder, CEO of TESARO. “We are also pleased to add Future Fund and Ally Bridge as new investors as we continue to execute on the launch of VARUBI® and advance both our comprehensive niraparib development program and our portfolio of immuno-oncology candidates.”

This offer and sale of the shares have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws. The shares were offered only to accredited investors.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

For earnings history and earnings-related data on TESARO (TSRO) click here.

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