Ignyta Announces Full Exercise of Underwriters’ Option to Purchase Additional Shares

SAN DIEGO–(BUSINESS WIRE)–Ignyta, Inc. (Nasdaq: RXDX) (“Ignyta”), a precision oncology
biotechnology company, today announced that the underwriters of its
previously announced underwritten public offering of 8.0 million shares
of its common stock have exercised in full their option to purchase an
additional 1.2 million shares at the public offering price of $6.25 per
share, less underwriting discounts and commissions. The gross proceeds
from the offering, including the option exercise, are expected to be
$57.5 million, before deducting underwriting discounts and commissions
and estimated offering expenses payable by Ignyta. The offering is
expected to close on or about May 4, 2016, subject to customary closing
conditions.
Ignyta anticipates using the net proceeds from the offering to fund
research and development activities for its development programs,
including, but not limited to, the clinical development of entrectinib,
to conduct ongoing clinical and pre-clinical development of other
pipeline assets such as taladegib, RXDX-105, RXDX-106 and its Spark
discovery programs, to complete development activities related to the
diagnostic lab and companion diagnostics for each of its targeted
therapeutics, and for working capital and other general corporate
purposes.
J.P. Morgan Securities LLC is acting as lead book-running manager for
the offering. Piper Jaffray & Co. is also acting as a book-running
manager. Ladenburg Thalmann is acting as co-manager for the offering.
The shares described above are being offered by Ignyta pursuant to a
shelf registration statement on Form S-3, including a base prospectus,
that was previously filed by Ignyta with the Securities and Exchange
Commission (the “SEC”) and that was declared effective on April 21,
2016. A final prospectus supplement and accompanying prospectus relating
to the offering have been filed with the SEC and are available on the
SEC’s website located at https://www.sec.gov.
Copies of the final prospectus supplement and the accompanying
prospectus related to this offering, when available, may be obtained
from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866)
803-9204, or by email at prospectus-eq_fi@jpmchase.com;
or from Piper Jaffray & Co., Attention: Prospectus Department, 800
Nicollet Mall, J12S03, Minneapolis, MN 55402, or by telephone at (800)
747-3924, or by email at prospectus@pjc.com.
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.
About Ignyta, Inc.
At Ignyta, we fight cancer – a formidable opponent that manifests as
thousands of different molecularly defined diseases and takes away
millions of lives globally, every year. In this fight, our big hairy
audacious goal (BHAG) is not just to shrink tumors but to eradicate
residual disease – the source of cancer relapse and recurrence – in
precisely defined patient populations by 2030. We will work tirelessly
to achieve this BHAG by pursuing an integrated therapeutic (Rx) and
companion diagnostic (Dx) strategy for treating cancer patients. Our Rx
efforts are focused on discovering, in-licensing or acquiring, then
developing and commercializing, molecularly targeted therapies that,
sequentially or in combination, are foundational for eradicating
residual disease. Our Dx efforts aim to pair these product candidates
with biomarker-based companion diagnostics that are designed to
precisely identify, at the molecular level, the patients who are most
likely to benefit from the therapies we develop. We believe that only
through this integrated Rx/Dx approach can we succeed in this fight.
Forward-Looking Statements:
This press release contains “forward-looking statements” about Ignyta as
that term is defined in the Private Securities Litigation Reform Act of
1995. Statements in this press release that are not purely historical
are forward-looking statements. Such forward-looking statements include,
among other things, references to Ignyta’s expectations regarding the
completion, timing and size of the public offering and the anticipated
use of proceeds therefrom. Among the factors that could cause actual
results to differ materially from those indicated in the forward-looking
statements are risks and uncertainties associated with market conditions
and the satisfaction of customary closing conditions related to the
offering, as well as risks and uncertainties associated with Ignyta’s
business and finances in general, and the other risks described in
Ignyta’s annual report on Form 10-K for the year ended December 31, 2015
and other filings with the SEC. Ignyta undertakes no obligation to
update the statements contained in this press release after the date
hereof.