Agile Therapeutics Tanks on Secondary Offering

By Chris Lange Updated Jan 12, 9:29AM EST · Published Aug 3, 10:35AM EDT

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Agile Therapeutics Tanks on Secondary Offering — © Thinkstock

Agile Therapeutics Inc. (NASDAQ: AGRX) saw its stock dip early on Thursday after the firm announced a secondary offering. Although the stock is down year to date, it’s actually more or less doubled since January. So now might be the time to take some profit.

The firm said that it intends to price its 5.33 million shares at $3.75, with an overallotment option for an additional 800,000 shares. At this price, the entire offering is valued up to approximately $23 million. Keep in mind that this firm has a market cap of roughly $132 million prior to the offering.

The underwriters for the offering are William Blair, RBC Capital Markets, Cantor Fitzgerald, Janney Montgomery Scott and Noble Capital.

This is a women’s health care company dedicated to fulfilling the unmet health needs of today’s women. Its current product candidates are designed to provide women with contraceptive options that offer greater convenience and facilitate compliance.

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Agile has developed a proprietary transdermal patch technology, called Skinfusion, which is designed to provide advantages over currently available patches and is intended to optimize patch adherence and stability as well as patient comfort. Its lead product candidate, Twirla, also known as AG200-15, is a once-weekly prescription contraceptive patch that is at the end of Phase 3 clinical development. Twirla is a combined hormonal contraceptive patch that contains the active ingredients ethinyl estradiol, which is a synthetic estrogen, and levonorgestrel, which is a type of progestin, a synthetic steroid hormone. Both have an established history of efficacy and safety in currently marketed combination low-dose, oral contraceptives.

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This company intends to use the net proceeds from this offering to pursue regulatory approval for Twirla, with the remainder going toward general corporate purposes.

Shares of Agile traded down more than 25% early Thursday to $3.41, with a consensus analyst price target of $11.10 and a 52-week range of $1.82 to $8.15.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.