Array BioPharma Inc. (NASDAQ: ARRY) saw its shares turn negative early on Thursday after the firm announced a secondary offering. The company offered no pricing details, but it does value the offering up to $175 million, with an overallotment option for an additional $26.25 million.
The underwriters for the offering are JPMorgan, Cowen and Piper Jaffray.
For some quick background: this is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer.
The firm has eight registration studies that are currently advancing related to seven Array-owned or partnered drugs: binimetinib (MEK162), encorafenib (LGX818), selumetinib (partnered with AstraZeneca), danoprevir (partnered with Roche), ipatasertib (partnered with Genentech), larotrectinib (partnered with Loxo Oncology) and tucatinib (partnered with Cascadian Therapeutics).
In the filing, the company said:
We intend to use the net proceeds from this offering to fund our research and development efforts, including clinical trials for our proprietary candidates, build and scale commercial capability, and for general corporate purposes, including general working capital purposes. We may also use a portion of the net proceeds to acquire or invest in complementary businesses, technologies, drugs, drug candidates or other intellectual property, although we have no present commitments or agreements to do so.
Shares of Array closed Wednesday up 5.6% at $10.53, with a consensus analyst price target of $14.56 and a 52-week range of $3.45 to $13.40. Following the release, the stock was initially down 6.7% at $9.82 in early trading indications Thursday.