Fibrocell Science, Inc.
) plunged 15.83% on Sep 26, 2013, after it announced the pricing
of an underwritten public offering of 11,000,000 shares of its
common stock at $4.10 per share.
The offer price of $4.10 per share was at a 17.8% discount to
the closing price of $4.99 per share on Sep 25, 2013.
The offering is expected to close by Oct 1 and generate gross
proceeds of $45.1 million.
Fibrocell will grant the underwriters a 30-day option to
purchase up to an additional 1,650,000 shares to cover over
allotments, if any.
Fibrocell intends to use the net proceeds from the stock
offering to fund its phase III studies for additional indications
for its currently marketed product, LAVIV.
We note that LAVIV, an autologous cellular product, is
approved for use in adults for improvement of the appearance of
moderate-to-severe nasolabial fold wrinkles.
The company is looking to expand the LAVIV label and assess
the product for several indications including the treatment of
restrictive burn scars (RBS). In May 2013, the company announced
the initiation of a phase II study evaluating LAVIV for the
treatment of RBS.
Fibrocell also plans to progress its collaboration programs
) and use the funds for working capital and general corporate and
We note that Fibrocell is collaborating with Intrexon
Corporation for the discovery and development of treatments for
rare collagen deficient conditions such as recessive dystrophic
epidermolysis bullosa and also autoimmune and inflammatory
disorders such as morphea (localized scleroderma), cutaneous
eosinophilias and moderate to severe psoriasis.
Fibrocell Science currently carries a Zacks Rank #3 (Hold).
Right now, companies that look attractive include
). Both carry a Zacks Rank #1 (Strong Buy).
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