Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: ARIAD Pharmaceuticals (Nasdaq: ARIA ) shares dropped 10% in trading Tuesday.
So what: A day after shares popped, the company announced a stock offering at $3.70 per share. The company will sell 16 million shares and net $59.2 million before fees.
Now what: The cash will be used to fund a trial of oral ponatinib, which the company hopes to bring to the market. This is disappointing after yesterday's bump, but the offering will provide enough cash to fund operations into 2012. I am more cautious about this news today because the offer price was lower than yesterday's close and dilutes current shareholders.
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