Progenics Pharmaceuticals, Inc. (PGNX) announced its intention to raise funds through the issuance of shares. The company expects to raise gross proceeds of about $35 million through the issuance of 7.6 million shares at a price of $4.60 per share. The offer is slated to close on Feb 26, 2014.
The company has also given underwriters an option to purchase an additional 1.1 million shares of its common stock within the next one month. Progenics’ cash and cash equivalents balance was about $77.8 million at the end of the third quarter of 2013.
Progenics said that it will use the funds raised from the offering for its research and development (R&D) activities and general corporate purposes.
Progenics’ primary area of focus is oncology. The company is developing several candidates on the basis of prostate specific membrane antigen (PSMA). Lead candidates in its pipeline are PSMA ADC (treatment of prostrate cancer), MIP-1404, an imaging agent and Azedra (a radiotherapy candidate for pheochromocytoma). All these candidates are in phase II development.
The company is also looking to gain FDA approval for an additional indication for Relistor, a subcutaneous injection currently approved for the treatment of opioid induced constipation (OIC), in patients with advanced illness who are receiving palliative care, when response to laxative therapy has not been sufficient. Progenics is looking to get Relistor approved for the treatment of chronic non-cancer pain patients with OIC.
We expect investor focus to remain on pipeline updates from the company.
Progenics holds a Zacks Rank #3 (Hold). Some better ranked stocks in the health care sector include Alexion Pharmaceuticals, Inc. (ALXN), Biogen Idec Inc. (BIIB) and Acceleron Pharma, Inc. (XLRN). While Alexion and Biogen carry a Zacks Rank #1 (Strong Buy), Acceleron holds a Zacks Rank #2 (Buy).
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