Here's Why Arrowhead Pharmaceuticals Is Soaring Today
Shares of Arrowhead Pharmaceuticals (NASDAQ: ARWR) gained as much as 14.4% today after the company announced a public stock offering. It seems counterintuitive, but investors appear to be excited about a snippet of text listing possible uses for the proceeds.
The company made the standard explanation that the cash will be used for general corporate expenses, to fund maturing clinical trials, and the like. But Arrowhead Pharmaceuticals also included a nonstandard detail in the press release for the public offering: "A portion of the net proceeds may also be used for the acquisition of complementary businesses, products and technologies, or for other strategic purposes."
Investors may be getting a little ahead of themselves here, but if Arrowhead Pharmaceuticals pulls the trigger on any strategic investment, then it's likely to be in one (relatively boring) category in particular.
Source Fool.com
