Here's Why Idera Pharmaceuticals Plunged as Much as 35% Today
Shares of pre-revenue biopharma Idera Pharmaceuticals (NASDAQ: IDRA) sank as much as 35% this morning after the company announced the pricing of a major public stock offering. The company will issue over 33 million shares at $1.50 apiece and offer up to an additional 5 million shares at the same price point.
The financing will add net proceeds of $46.8 million. While that's a sizable amount and will prove useful in efforts to further develop its lead oncology drug candidate, it also represents sizable dilution for existing shareholders. The number of shares outstanding will increase by a whopping 26% when the offering closes.
As of 11:27 a.m. EDT, the stock had settled to a 28.9% loss, which brought shares roughly in line with the $1.50 offering price.
Source: Fool.com
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