NPS Pharmaceuticals, Inc. (NPSP) recently priced a public offering of 6,000,000 shares at $14.53 a share, with a 30-day over-allotment option for an additional 900,000 shares. NPS Pharma expects to raise approximately $87.2 million from the offering, which is expected to close on May 24, 2013.
NPS Pharma intends to boost its balance sheet through the offering. The biopharmaceutical company exited the first quarter of 2013 with cash, cash equivalents, and marketable investment securities of approximately $90 million. We believe that the proceeds from the offering will help NPS Pharma to further develop its pipeline and promote its marketed drug Gattex (teduglutide).
NPS Pharma launched Gattex in Feb 2013, following approval by the US Food and Drug Administration (FDA) in Dec 2012. The drug was approved for treating adults with short bowel syndrome (SBS), dependent on parenteral support. Sales of Gattex in the US came in at $654,000 for the first quarter of 2013. The drug is approved in Europe (Sep 2012) under the trade name Revestive.
NPS Pharma is also developing Natpara (rhPTH [1-84]) for the treatment of adult hypoparathyroidism. The company expects to submit a Biologic License Application to the FDA for the drug during the remainder of the year.
NPS Pharma carries a Zacks Rank #3 (Hold). Companies such as Jazz Pharmaceuticals, Inc. (JAZZ), Cubist Pharmaceuticals Inc. (CBST) and Celgene Corporation (CELG) appear to be more attractive. While Jazz Pharma carries a Zacks Rank #1 (Strong Buy), Cubist Pharma and Celgene Corporation carry a Zacks Rank #2 (Buy).
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