No Surprise! Amicus Therapeutics Hits Up Investors for More Cash
Amicus Therapeutics (NASDAQ: FOLD) will be able to submit its Fabry disease drug Galafold to the FDA for consideration, a reversal of fortune that sent shares skyrocketing earlier this week. While news of the FDA's change of heart was unexpected, management's decision after the bell yesterday to issue more shares wasn't. As I wrote previously, the company's cash at the end of March had only been expected to last until the middle of 2018, and that was before factoring in any spending increases associated with a now possible U.S. launch.
It's very common for young biotech companies to issue shares to raise money to fund their research and commercialization programs, and tapping equity investors for financing via stock offerings is less costly than hitting up lenders and racking up debt.
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Source: Fool.com
