Sarepta shares sink on the back of a monster $500M raise
Remember when Janet Woodcock decided to push through a controversial FDA approval for Duchenne MD drug eteplirsen in part because of her fears that the company might have been too financially weak to survive a rejection?
Any remaining concerns on that score can now be set aside.
Shares of Sarepta $SRPT were badly dinged Thursday as the biotech lined up a whopping $500 million raise. The biotech priced the offering of 3.8 million shares at $131 each, adding to the company’s reserves as Sarepta pursues a range of new development efforts for Duchenne muscular dystrophy.
Sarepta’s shares slid more than 7% on Thursday, but the stock is still well over double what it started an eventful year at. Much of that has to do with the enthusiasm for the biotech’s gene therapy program.
The underwriters get a 30-day option to purchase up to an additional 572,550 shares of its common stock on the same terms and conditions.
Goldman Sachs, JP Morgan Securities and Credit Suisse Securities are acting as joint book-running managers of the proposed offering. Cowen and Company is acting as sole lead manager. William Blair & Company, Robert W. Baird & Co, Nomura Securities International, Cantor Fitzgerald & Co and HC Wainwright & Co are acting as co-managers.