Achaogen Announces Pricing of Public Offering of Common Stock

SOUTH SAN FRANCISCO, Calif., Dec. 14, 2016 -- Achaogen, Inc. (NASDAQ:AKAO), a clinical-stage biopharmaceutical company developing novel antibacterials addressing multi-drug resistant (MDR) gram-negative infections, today announced the pricing of an underwritten public offering of 6,500,000 shares of its common stock at a price to the public of $13.50 per share, for gross proceeds of approximately $87,750,000 before deducting underwriting discounts and commissions and offering expenses payable by Achaogen. In addition, Achaogen has granted the underwriters of the offering a 30-day option to purchase up to an additional 975,000 shares of common stock at the public offering price, less underwriting discounts and commissions.  All of the shares are being offered by Achaogen.

Achaogen intends to use the net proceeds of the offering to fund the ongoing development and preparation for potential commercialization of plazomicin, including the preparation and submission of Achaogen’s New Drug Application with the U.S. Food and Drug Administration (FDA) and a Marketing Authorization Application with the European Medicines Agency (EMA) for plazomicin, to support its activities during the FDA’s and the EMA’s review and approval process and pre-commercialization marketing activities for plazomicin, and any remaining proceeds for working capital and general corporate purposes, including research and development of additional product candidates.

The offering is expected to close on or about December 19, 2016, subject to satisfaction of customary closing conditions.

Leerink Partners LLC, Stifel and Guggenheim Securities, LLC are acting as joint book-running managers for the offering. SunTrust Robinson Humphrey, Inc. is acting as lead manager for the offering.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on April 21, 2015. This offering is being made solely by means of such registration statement, including a prospectus supplement and the accompanying prospectus forming a part of the registration statement. Copies of the prospectus supplement and the accompanying prospectus related to the offering may be obtained from Leerink Partners LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA, 02110, by email at [email protected], or by phone at 800-808-7525, ext. 6142; Stifel, Nicolaus & Company, Incorporated, One Montgomery Street, Suite 3700, San Francisco, California 94104, Attn: Syndicate, by phone at 415-364-2720 or by email at [email protected]; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by email at [email protected], or by phone at 212-518-9658.

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

About Achaogen

Achaogen is a clinical-stage biopharmaceutical company passionately committed to the discovery, development, and commercialization of novel antibacterials to treat MDR gram-negative infections. Achaogen is developing plazomicin, Achaogen’s lead product candidate, for the treatment of serious bacterial infections due to MDR Enterobacteriaceae, including carbapenem-resistant Enterobacteriaceae. Achaogen’s plazomicin program is funded in part with a contract from the Biomedical Advanced Research and Development Authority. Plazomicin is the first clinical candidate from Achaogen’s gram-negative antibiotic discovery engine, and Achaogen has other programs in early and late preclinical stages focused on other MDR gram-negative infections.

Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts contained herein are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Achaogen’s statements regarding the completion, timing and use of proceeds of the proposed public offering. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause Achaogen’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, market conditions and the satisfaction of closing conditions related to the proposed public offering, the uncertainties inherent in the drug development and commercialization process, including regulatory requirements, the timing of Achaogen’s regulatory filings, Achaogen’s commercialization plans and efforts and other matters that could affect the availability or commercial potential of plazomicin, Achaogen’s reliance on third-party contract manufacturing organizations to manufacture and supply its product candidates and certain raw materials used in the production thereof, Achaogen’s dependence on its President and Chief Executive Officer and risks and uncertainties related to the acceptance of government funding for certain of Achaogen’s programs, including the risk that the Biomedical Advanced Research and Development Authority (BARDA) could terminate Achaogen’s contract for the funding of the plazomicin development program. Achaogen does not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events, changed circumstances or otherwise. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Achaogen’s business in general, see Achaogen’s prospectus supplement filed with the SEC on December 12, 2016, including the documents incorporated by reference therein, which includes Achaogen’s current and future reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 and its Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

Media Contact:
Denise Powell
510.703.9491
[email protected]