Achaogen Inc. (NASDAQ: AKAO) shares pulled back slightly early in Wednesday’s session after the company announced the pricing of its secondary offering. This company has been on a roll over the past week, going from a $5 stock to as high as the $16 mark. Now Achaogen is looking to cash in on its success and continue to fund its development with this offering.
The company announced that it has priced its 6.5 million share offering at $13.50 per share, with an overallotment option for an additional 975,000 shares. At this price, the entire offering is valued up to roughly $100.9 million. All of the shares in this offering are being offered by Achaogen.
Leerink Partners, Stifel and Guggenheim Securities are acting as joint book-running managers for the offering, while SunTrust Robinson Humphrey is acting as lead manager.
Keep in mind that this company posted an incredible gain on Monday after the firm reported positive results from a late-stage trial. Essentially, the company announced that plazomicin met the objective of non-inferiority compared to meropenem for the U.S. Food and Drug Administration (FDA) and achieved superiority for the European Medicines Agency (EMA) primary efficacy endpoints in the Phase 3 EPIC registration trial in patients with complicated urinary tract infections and acute pyelonephritis.
In the EPIC trial, plazomicin successfully met the objective of non-inferiority compared to meropenem for the FDA-specified primary efficacy endpoints and achieved superiority for the EMA-specified primary efficacy endpoints.
The company will be offering the shares for this secondary offering and thus intends to use the net proceeds:
- To fund the ongoing development and preparation for potential commercialization of plazomicin, including the preparation and submission of Achaogen’s New Drug Application (NDA) with the FDA and a Marketing Authorization Application (MAA) with the EMA for plazomicin.
- To support its activities during the FDA’s and the EMA’s review and approval process and pre-commercialization marketing activities for plazomicin.
- With any remaining proceeds going towards working capital and general corporate purposes, including research and development of additional product candidates.
Shares of Achaogen were last seen on Wednesday up fractionally at $14.92, with a consensus analyst price target of $20.20 and a 52-week trading range of $2.59 to $16.20.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
