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 biotechnology firm ImmunoGen
So what: After the market closed yesterday, ImmunoGen priced 6.25 million shares at $16, an 8% discount to its previous closing price. The goal for ImmunoGen is to raise about $100 million, although the company wasn't forthcoming about the potential uses for its cash. The offering would raise ImmunoGen's total cash to around $275 million (including the $175 million it reported at the end of its most recent quarter), with no debt, and up its shares outstanding to more than 83 million from just 43 million in 2008.
Now what: Investors appear shocked with the share offering, but there are really no surprises here. ImmunoGen has no FDA-approved drugs and, until it does, it will burn through its precious cash. ImmunoGen has been rallying since Roche (OTC: RHHBY) reported positive results from its advanced breast cancer treatment T-DM1, which is using ImmunoGen's antibody-drug conjugates, or ADCs, to deliver a toxin to targeted cancer cells. With the stock near its highs, the offering could be a smart move for shareholders in the long run despite its dilutive effects.
Craving more input? Start by adding ImmunoGen to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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