It is not unusual to see biotech and biohealth companies raise cash after good news. After all, these companies either need to raise lots of cash from the market to fund their research and developments efforts and to fund trials, or they have to partner with a larger drug or biotech powerhouse to get the capital needed. 24/7 Wall St. has observed several capital raises that are coincidentally hitting the market at once. At least we hope this is a coincidence rather than a money grab at the top.
Achillion Pharmaceuticals Inc. (NASDAQ: ACHN) had a $676 million market cap, and it has sold 15 million shares at $8.40 a piece in an offering led by Citigroup and Leerink Swann. That comes to $126 million before fees. Shares are up 1.7% at $8.65, after having fallen from $9.20 before the offering. The 52-week range is $5.42 to $11.36.
EnteroMedics Inc. (NASDAQ: ETRM) is actually in devices rather than medicine, but it is down handily on its offering news. The underwriting group of Craig-Hallum Capital Group, and the public offering is 13,770,000 shares of its common stock and warrants to purchase 5,508,000 shares. Each share of common stock in this offering will be sold with a warrant to purchase 0.40 of a share of common stock. Each share and corresponding warrant will be sold at an aggregate price to the public of $0.95, for gross proceeds of $13,081,500. This is only a $47 million stock, and the $1.12 closing price compares to a 52-week range of $1.07 to $4.40. Shares are going to hit a 52-week low, as the stock is down 13% at $0.97.
Immunomedics Inc. (NASDAQ: IMMU) also has announced that it plans to sell stock via Oppenheimer and Cowen, but no terms have been shown. Shares hit a 52-week low of $2.70 on Thursday, against a 52-week range of $2.70 to $4.00, and we have shares indicated down 7% at $2.50 on Friday.
NeoGenomics Inc. (NASDAQ: NEO) operates a network of cancer-focused testing laboratories, and it filed to sell 3 million shares of common stock after the close on a form 424B5. Some 90% of the shares are coming from the company, and 10% are from a selling holder. Craig-Hallum Capital, Ladenburg Thalmann and a firm called Emerging Growth Equities are the underwriters. At $3.28, its 52-week range is $1.48 to $3.52.