Medgenics Announces Pricing of Secondary Offering

By Chris Lange Updated Jan 13, 6:33AM EST · Published Jun 21, 12:10PM EDT

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Medgenics Announces Pricing of Secondary Offering — © Thinkstock

Medgenics Inc. (NYSEMKT: MDGN) saw its shares drop on Tuesday after the company announced the pricing of its secondary offering. The 3.64 million shares will be priced at $5.50 per share, with an overallotment option for an additional 546,000 shares. At this price, the entire offering is valued up to $23.0 million. The offering is expected to close on June 24.

Note that this company has a total market cap of roughly $180 million, with this offering being valued at about 12.8% of the total cap.

Looking at the 50-day ($5.36) and 200-day ($5.68) moving averages, the offering appears accurately priced between these averages.

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Apart from Tuesday’s move, the stock is up 3.7% year to date, while over the past 52 weeks the stock is down over 7%.

Jefferies is acting as the sole book-running manager for the offering. JMP Securities and Needham are acting as co-managers.

This company’s mission is to unlock the potential of genomic medicine to identify and treat patients with life-altering conditions. Its efforts, including its internal research and development and ongoing sponsored research and licensing agreements with a well-respected pediatric academic medical center, give Medgenics the ability to focus on the underlying genetic pathway of pediatric diseases with the goal of finding therapeutic solutions for subpopulations of both children and adults living with rare and other difficult-to-treat diseases. Medgenics is also the developer of TARGT (Transduced Autologous Restorative Gene Therapy), a proprietary gene therapy platform.

Shares of Medgenics were trading down 13.5% at $5.40 on Tuesday, with a consensus analyst price target of $13.17 and a 52-week trading range of $3.09 to $10.25.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.