2 Health Care Stocks Crushed on Thursday
The health care sector was in trouble over the past year, under fire from congressional hearings and politicians on the campaign trail. But 2017 could be different, with a new administration and new perspective that could lead to more positive trials, U.S. Food and Drug Administration (FDA) approvals and mergers and acquisitions.
Investors and analysts are eagerly awaiting the House vote on Trump’s new health care bill. Should the bill pass, investors might gain confidence that the president can actually push his agenda, while a failure to pass could send the markets lower.
There are already a couple of health care stocks that are on the move ahead of the vote, but not so much for political reasons. These two stocks were crushed, but at least they are making some money from it.
Heat Biologics Inc. (NASDAQ: HTBX) saw its shares tumble on Thursday after the firm announced the pricing of its secondary offering. The biotech intends to price its 5 million shares at $0.80 per share, with an overallotment option for an additional 750,000 shares.
At the price, the entire offering is valued up to $4.6 million. Keep in mind that the company has a total market cap of just over $23 million.
Heat intends to use the proceeds from this offering to continue to fund its and its subsidiaries’ preclinical and clinical programs, as well as for working capital and general corporate purposes.
Shares of Heat Biologics were last seen down 15% at $0.87, with a consensus analyst price target of $4.00 and a 52-week trading range of $0.40 to $3.35.
Tandem Diabetes Care Inc. (NASDAQ: TNDM) shares lost about a quarter after the company reported that it had priced its secondary offering. Tandem is offering 18 million shares at a price of $1.25 per share, with an overallotment option for an additional 2.7 million shares. At that price point, the whole offering is worth about $25.875 million, compared to a market cap of $36.8 million.
The underwriters for the offering are Piper Jaffray, Oppenheimer and Wedbush PacGrow.
The company intends to use the net proceeds from this offering for working capital and other general corporate purposes.
Shares of Tandem were down 24% at $1.17 on Thursday. The stock has a 52-week range of $1.15 to $11.30 and a consensus price target of $5.10.