Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Chimerix, Inc. Shares Flew Higher

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: Shares of Chimerix (NASDAQ: CMRX  ) , a clinical-stage biopharmaceutical company focused on developing oral antiviral products, surged as much as 15% after it announced the pricing of a secondary share offering.

So what: According to Chimerix's press release, which came out after the closing bell last night, it priced 7.3 million shares at $14.22 per share, the same as yesterday's closing price. The gross proceeds before deducting underwriting discounts and commissions is expected to be approximately $103.8 million. Chimerix plans to use the raised capital to fund its research and development, as well as for general corporate purposes.

Now what: Under normal circumstances, stocks don't rise when a company announces a share offering as it means dilution to existing shareholders. In this case, though, Chimerix has two factors working in its favor. First, the fact that it was able to price its secondary at yesterday's close despite adding 7.3 million new shares signifies that investor demand for these shares was already high to begin with. Secondly, the $103.8 million in gross proceeds should alleviate any cash concerns and give the company years of R&D viability. While this is a nice short-term mover, investors would be wise to keep their eyes on the prize: namely brincidofovir (CMX001), Chimerix's lead oral antiviral, which has demonstrated antiviral activity against all five families of double-stranded DNA viruses, including cytomegalovirus, in previous studies and is currently in phase 3 trials. The success of failure of brincidofovir is much more likely to drive a long-term incline or decline in Chimerix's share price than a one-off share offering.

Chimerix may have soared today, but it'll likely struggle to keep pace with this top stock over the long run
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2966978, ~/Articles/ArticleHandler.aspx, 9/1/2015 10:17:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated Moments ago Sponsored by:
DOW 16,175.90 -352.13 -2.13%
S&P 500 1,927.60 -44.58 -2.26%
NASD 4,694.67 -81.84 -1.71%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 10:01 AM
CMRX $48.01 Down -0.93 -1.90%
Chimerix CAPS Rating: ***