Arena Pharmaceuticals Inc. (NASDAQ: ARNA) saw its shares drop sharply on Tuesday after the company announced a secondary offering. Arena plans to offer 60 million shares of its common stock at the price of $1.15 per share, with an overallotment option for an additional 9 million shares. At this price, the entire offering is valued up to roughly $79.35 million.

The underwriters for the offering are Citigroup and Leerink Partners.

This biopharmaceutical company is focused on developing novel, small molecule drugs with optimized receptor pharmacology designed to deliver broad clinical utility across multiple therapeutic areas.

Three of its most advanced investigational clinical programs are ralinepag (APD811) in Phase 2 evaluation for pulmonary arterial hypertension, etrasimod (APD334) in Phase 2 evaluation for multiple autoimmune indications, and APD371 in Phase 2 evaluation for the treatment of pain associated with Crohn’s disease.

Additionally, it has collaborations with Eisai, Axovant Sciences and Boehringer Ingelheim International.

The company intends to use the net proceeds from this offering for the clinical and preclinical development of drug candidates; for general corporate purposes, including working capital and costs associated with manufacturing services; and for capital expenditures.

At the end of March 2017, the company had roughly $79.5 million of cash and cash equivalents. Overall its market cap is $307 million.

Shares of Arena were last seen down 15% at $1.25 on Tuesday, with a consensus analyst price target of $3.75 and a 52-week trading range of $1.21 to $2.16.

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