Progenics Pharmaceuticals, Inc.
) 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
We expect investor focus to remain on pipeline updates from the
Progenics holds a Zacks Rank #3 (Hold). Some better ranked stocks
in the health care sector include
Alexion Pharmaceuticals, Inc.
Biogen Idec Inc.
Acceleron Pharma, Inc.
). While Alexion and Biogen carry a Zacks Rank #1 (Strong Buy),
Acceleron holds a Zacks Rank #2 (Buy).
ALEXION PHARMA (ALXN): Free Stock Analysis
BIOGEN IDEC INC (BIIB): Free Stock Analysis
PROGENICS PHARM (PGNX): Free Stock Analysis
ACCELERON PHARM (XLRN): Free Stock Analysis
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