Health care stocks gave back a portion of their prior gains in afternoon trading, with the NYSE Health Care Index climbing more than 0.2% while shares of health care companies in the S&P 500 were up over 0.4% as a group today.
In company news, Strongbridge Biopharma (SBBP) still was trading near its session low of $6.00 a share in late Wednesday trading, climbing slightly off its 20% decline earlier today that followed the commercial-stage drugmaker pricing a $25 million public offering of 4 million of its ordinary shares at $6.25 apiece, a 16.7% discount to yesterday’s closing price.
Strongbridge granted 30-day options to underwriters participating in the offering to buy up to 600,000 additional shares to cover possible overallotments.
After first paying underwriter discounts and other offering expenses, the company expects to use net proceeds to invest in expanding the commercial infrastructure for its Keveyis medication to treat primary periodic paralysis as well as continued development of its Recorlev investigational cortisol synthesis inhibitor and its veldoreotide acromegaly treatment.
In other sector news,
(+) CTMX, Climbs to a new record high after announcing a strategic collaboration with Amgen (AMGN) to co-develop potential genetic oncology medications. Amgen will pay $40 mln upfront and acquire a $20 mln stake in CytomX, which is eligible for up to $455 mln in milestone payments.
(-) CLSN, Revises Series AAA and Series BBB warrants issued to investors in July, making them immediately exercisable to buy up to 2.435 mln shares each at $2.07 and $4.75 per share, respectively. Also issues new Series DDD warrants to buy up to 1.17 mln shares at $6.07 each.