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Natera Plans Stock Offering Worth up to $201.3M; Expects Q3 Revenue Gain Above Consensus Estimate

NEW YORK — Natera on Tuesday filed with the US Securities and Exchange Commission for a follow-on public offering of its common stock worth up to $201.3 million.

The San Carlos, California-based company also said on Tuesday that it expects its third quarter revenues to be in the range of $74 million to $76 million, topping Wall Street's consensus estimate of $73.5 million. The company said it processed around 200,000 tests in the third quarter, representing approximately 20 percent growth over the year-ago quarter. 

It added that it expects its net loss and net loss per share for the third quarter to reflect expenses associated with the commercialization of its new Prospera organ transplant test and oncology tests, as well as higher R&D investments.

Natera expects to offer around 4.6 million shares of common stock for total proceeds of $175 million, assuming an offering price of $38.19 per share. The underwriters of the offering will also be granted a 30-day option to purchase roughly $26.3 million of additional shares.

JP Morgan, Morgan Stanley, Cowen, and Piper Jaffray are acting as joint bookrunning managers of the offering, with Baird and Craig-Hallum Capital Group acting as co-managers.

During Wednesday morning trading on the Nasdaq, shares of Natera were down 11 percent at $35.00.

Natera said that it will use the money from the offering for working capital, general corporate purposes, and investment in research and development. It may also use a portion of the funds for acquisitions of complementary businesses, technologies, or other assets, although it has no current plans to do so.

Earlier this year, Natera closed a follow-on offering for net proceeds of about $108 million.