Odonate Therapeutics, Inc. (ODT) stock took a jump of about 20.53% on Friday, which added $3.04 to each of its share. The stock got the traction on the day after announcement of an underwritten price offering by the company.
The company came announcing offering of 5,614,036 common stock shares at $14.25 each. Underwriters are also awarded with the option to acquire the common shares. The biotechnology company granted them a time period of 30 days to purchase shares. For the purpose company allocated 842,105 common stock shares available to underwriter on same terms and conditions. Depending upon the normal closing procedures, the offering is likely to close today.
The company is expecting to be getting a gross amount of $80 million from the offering. This would be after cutting the costs of usual underwriting concessions and expenses incurred to execute the offering process. The funds so generated would be utilized for development, regularization and preparation of tesetaxel on commercial basis. The tesetaxal is a chemotherapy being tested to cure several types of cancer using oral administration of taxane. Tesetaxel is the lead drug by Odonate and is under development for nearly 10 years. But the drug still failed to came up to expectations as last week data for the same lag the hopes. That caused the Odonate’s stock to take a 35% dip. General corporate spending and operating capital will be the other utilizations of the proceeds from recent offering.
Jefferies was the book runner of the offering whereas LifeSci Capital acted as lead arranger.