Regenxbio Inc. (NASDAQ: RGNX) saw its shares drop handily after the firm announced the pricing of its secondary offering. The company plans to offer 3.7 million shares of common stock at the price of $20.50 per share, with an overallotment option for an additional 555,000 shares. At this price the entire offering is valued up to $87.23 million. Keep in mind that this company normally trades on average 164,000 shares daily.
The underwriters for the offering are Morgan Stanley, Merrill Lynch, Piper Jaffray and Chardan Capital Markets.
This is a leading clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy. Its gene therapy product candidates are designed to deliver genes to cells to address genetic defects or to enable cells in the body to produce therapeutic proteins or antibodies that are intended to impact disease. Through a single administration, these gene therapy product candidates are designed to provide long-lasting effects, potentially significantly altering the course of disease and delivering improved patient outcomes.
Regenxbio seeks to develop, manufacture, commercialize and license product candidates across multiple therapeutic areas and target organs while continuing to expand the proprietary gene delivery platform, which is called the NAV Technology Platform.
The company’s NAV Technology Platform is currently being applied in the development of four internally developed product candidates and more than 20 product candidates being developed by NAV Technology Licensees.
In a recent filing Regenxbio said that it plans to use the net proceeds from this offering to fund the development of its pipeline, namely to commence the enrollment in clinical trials, fund U.S. Food and Drug Administration (FDA) submissions, and to expand manufacturing operations.
Shares of Regenxbio closed Tuesday down 9.5% at $22.10, with a consensus analyst price target of $30.50 and a 52-week trading range of $7.07 to $24.55. In early trading indications Wednesday, the stock was down over 6% at $20.75.