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Health and Healthcare

Biotechs Raising New Capital in Droves

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By Chris Lange Published
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Biotechnology has been one of the best performing sectors in the bull market. With the industry so hot, it seems like many of the smaller players are trying to bolster their balance sheets to get enough capital for their future product pipeline plans. 24/7 Wall St. has tracked several biotechs raising capital in secondary offerings this week — for what appears to be close to $550 million in total.

Celladon Corp. (NASDAQ: CLDN) filed to sell 7 million shares of its common stock. Based on the closing price of $21.67, from Monday, March 30, the offering would be valued at $151.69 million. Note that at the end of 2014, the company reported its total assets as $89.11 million. Shares of Celladon were down 2% at $18.56 Wednesday, in a 52-week trading range of $7.82 to $28.25. The company has a market cap of $426 million.

Coherus Biosciences Inc. (NASDAQ: CHRS) announced that it has priced 4.14 million shares in a secondary offering at $29.00 per share. This would value the filing at approximately $120 million. Coherus’s total assets as of the end of December were $187.22 million. Shares of Coherus fell 9.3% to $27.75. The stock has a 52-week trading range of $12.38 to $33.30, and the market cap is $926 million.

Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) filed to sell $150 million worth of ordinary shares. No other terms were given in the filing for pricing or number of shares. The company reported that its total assets at the end of 2014 were $32.93 million. Shares of Galmed were down 6% at $8.86, in a 52-week range of $4.58 to $13.50. The company’s market cap is $98 million.

ALSO READ: RBC’s 4 Biotech Stocks to Buy After Big Pullback

Trillium Therapeutics Inc. (NASDAQ: TRIL) announced that it will have a 2.6 million-share secondary offering. Shares priced at $19.50, valuing the total offering at $50.7 million, before taking out underwriting discounts and commissions. Shares of Trillium were up 10.5% at $22.35. The stock has a 52-week trading range of $5.64 to $22.46.

Raptor Pharmaceuticals Corp. (NASDAQ: RPTP) announced that it will have a secondary offering of common stock valued up to $75 million. No terms were given on the pricing or the number of shares being offered. The company totaled its assets at the end of 2014 arriving at a value of $189.07 million. Shares of Raptor were down 4.3%, at $10.40 on a 52-week range of $7.12 to $12.20. The company has a market cap of $719 million.

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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.

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