Tetraphase Pharmaceuticals Inc. (NASDAQ: TTPH) saw its shares pull back on Friday after the company announced that it has priced a secondary offering. Keep in mind that even though shares are pulling back from this current price level, the stock is up roughly 70% year to date.
Under the terms of the offering, the firm is selling 10 million shares for $6.50 apiece, with an overallotment option for an additional 1.5 million shares. At this price, the entire offering is valued up to $74.75 million. Tetraphase has a market cap of about $300 million.
The underwriters for the offering are Piper Jaffray, BMO Capital Markets, Stifel, SunTrust Robinson Humphrey and H.C. Wainwright.
This clinical-stage biopharmaceutical company uses its proprietary chemistry technology to create novel antibiotics for serious and life-threatening multidrug-resistant (MDR) infections. Tetraphase is developing its lead product candidate, eravacycline, a fully synthetic fluorocycline, as an intravenous and oral antibiotic for use as a first-line empiric monotherapy for the treatment of MDR infections, including Gram-negative infections. The firm is also pursuing the discovery and development of additional antibiotics that target unmet medical needs, including MDR Gram-negative bacteria.
Shares of Tetraphase traded down 7.7%% at $6.42 Friday morning, with a consensus analyst price target of $16.33 and a 52-week range of $3.11 to $9.93.