Tetraphase Pharma Decides to Reap Profits With Secondary Offering
Tetraphase Pharmaceuticals saw its shares pull back on Friday after the company announced that it has priced a secondary offering.
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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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
