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.
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.
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.
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.