Immunomedics, Inc. (NASDAQ:IMMU) priced its secondary offering of 10 million shares, each with an accompanying warrant, at $3.00, sending its shares sharply downwards yesterday.
The stock dropped 23.78% to $2.50 on volume of 22.64 million shares.
Immunomedics is a clinical-stage biopharmaceutical company developing monoclonal antibody-based products for the targeted treatment of cancer, autoimmune disorders and other serious diseases.
Immunomedics, Inc. (NASDAQ:IMMU) to raise $30 million
The company expects to raise an amount of $30 million through the issue of shares and accompanying warrants exercised within six months following the date of issuance.
The net proceeds from the offering will primarily be used for clinical and regulatory activities relating to IMMU-132, including submission of an NDA to FDA for accelerated approval in metastatic triple-negative breast cancer. Funds may also be used for working capital and general corporate purposes.
Immunomedics, Inc. (NASDAQ:IMMU) misses estimates in FQ4
For FQ4, Immunomedics declared EPS of $-0.17 which missed by $0.06, and revenue of $0.93 million, which missed by $0.27 million. Revenue was down 61.3% year-on-year.
Cash and cash equivalents were $50.6 million as of June 30, 2016.
Speaking on the earnings call, Michael R. Garone, Vice President Finance and Chief Financial Officer, said that the current funds were adequate for the company’s operations, research and development programs, including trials, preparations for commercial manufacture and the continuation of the phase 2 study of sacituzumab govitecan in certain select solid cancers, and the continuation of the Phase 1 trial of IMMU-114.
Shares in Immunomedics, Inc. (NASDAQ:IMMU) reached a high of $5.44 in early June 2016 but fell precipitously thereafter on news that its abstract, “Therapy of refractory/relapsed metastatic triple-negative breast cancer (mTNBC) with an anti-Τrop-2-SN-38 antibody-drug conjugate (ADC), sacituzumab govitecan (IMMU-132): Phase II results,” planned for oral presentation and selected by the American Society of Clinical Oncology (ASCO) for its Press Briefing, was cancelled.
After touching a low of $1.95 on June 27, the stock had been trending higher but most of those gains have been lost on the equity dilution.