Here's Why Cytokinetics Stock Tanked on Thursday
Shares of Cytokinetics (NASDAQ: CYTK), a clinical-stage biopharmaceutical company, tumbled after the company announced a $100 million convertible-debt offering. Concern about the potential dilution that will happen if the company can't repay its debt before the notes convert in 2026 pressured the stock, which fell by 19.4% as of 3:55 p.m. EST on Thursday.
After losing $91.1 million during the first nine months of 2019, Cytokinetics finished September with just $166 million in cash and short-term investments. Without any products to sell, the company's going to need more cash to support the continuing development of its clinical-stage pipeline.
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Source Fool.com
