Please ensure Javascript is enabled for purposes of website accessibility

Why Tyme Technologies Stock Is Taking Off Today

By Keith Speights - Updated Feb 9, 2021 at 12:09PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company closed a $100 million public stock offering.

What happened

Shares of Tyme Technologies (TYME 6.67%) were jumping 19.5% as of 11:45 a.m. EST on Tuesday. The solid gain came after the biotech announced the close of a public stock offering of 40 million shares.

So what

It's typical for biotechs to sink after announcing stock offerings. And that's exactly what happened with Tyme Technologies stock last week. These declines make sense because the value of existing shares is diluted when more shares are issued.

$1 bill folded into an arrow pointing up

Image source: Getty Images.

So why did Tyme's shares soar today? Maybe because investors are recognizing how much the additional gross proceeds of $100 million raised by the stock offering will help Tyme advance its clinical programs.

There's especially a lot of interest right now in the company's TYME-19 therapy. This experimental drug could prevent COVID-19 infection and be largely resistant to new coronavirus variants.

Now what

What's next for Tyme? The biotech hopes to quickly advance TYME-19 into clinical testing. Tyme also expects the announcement of results this year from a phase 2 study of experimental cancer therapy SM-88 conducted by the Joseph Ahmed Foundation. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tyme Technologies, Inc. Stock Quote
Tyme Technologies, Inc.
$0.26 (6.67%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.