Here's Why Deciphera Pharmaceuticals Tumbled Today
Shares of Deciphera Pharmaceuticals (NASDAQ: DCPH) fell as much as 16.1% today after the company announced a proposed public offering of common stock. The pre-revenue pharmaceutical company intends to raise gross proceeds of up to $287.5 million, although the number of shares offered won't be known until the pricing is announced.
The new funds will pad a balance sheet that sported $634 million in cash, cash equivalents, and marketable securities at the end of September. Although it may seem unnecessary, Deciphera Pharmaceuticals is preparing for a busy year. The company is expanding its pipeline, conducting an important late-stage trial for its lead drug candidate, and preparing for the potential market launch of the same experimental therapy in the second half of 2020.
As of 12:31 p.m. EST, the pharma stock had settled to a 14.9% loss.
Source Fool.com
