Shares of Athenex (ATNX 2.44%) were down by 14.3% as of 1:35 p.m. EDT on Thursday, following the company's announcement of the pricing of a public offering of common stock. With Athenex set to dilute existing shareholders, it isn't surprising that investors are selling off shares of the biotech today.
Athenex first announced its intention to raise funds through a public offering on Tuesday. This morning, the company disclosed that it would sell 10 million shares of its common stock at $11 per share. The biotech is also granting underwriters a 30-day option to purchase an additional 1.5 million shares at that price. Athenex expects to collect gross proceeds of $110 million through this transaction. Note that shares ended Wednesday's trading at $13.19. At this writing, they're worth roughly $11.30.
Athenex is currently developing an oral version of a chemotherapy drug called paclitaxel, which is typically administered intravenously. The company's oral paclitaxel has delivered positive results in clinical trials, as in treating patients suffering from metastatic breast cancer.
Athenex recently announced that the Food and Drug Administration had accepted its Biologics License Application for oral paclitaxel, and the medicine could earn regulatory approval sometime next year. The biotech says it intends to use the proceeds from this public offering to "label expansion strategies for Oral Paclitaxel," as well as to support other business activities.