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 clinical-stage biopharmaceutical company Protalix BioTherapeutics
So what: In order to finance its clinical research, Protalix needs cash -- and apparently that means at any cost. The company is pricing 4.5 million shares at $5.25, which is significantly below yesterday's close of $6.13.
Now what: To me, this doesn't seem like rocket science. Protalix doesn't have an approved drug and has been losing money for more than a decade now. Even worse, this isn't the most egregious abuse of a secondary offering Protalix has brought to the table. In October 2007, Protalix priced 5 million shares at $5, more than an 85% discount to the previous day's closing price. With a share count that has more than quadrupled over the past five years, Protalix continues to show that it doesn't care much about its investors, and, as such, I continue to view it as one of the worst investments in the biotech sector.
Craving more input? Start by adding Protalix BioTherapeutics to your free and personalized watchlist so you can keep up on the latest news with the company.
