Top Health Care Stocks
Health care stocks were drifting lower Wednesday afternoon, including a 0.2% decline for the NYSE Health Care Index in recent trading. Also, shares of health care companies in the S&P 500 also were down 0.2% as a group while the Nasdaq Biotechnology index was slipping about 0.1%.
Among health care stocks moving on news:
(-) G1 Therapeutics ( GTHX ) fell over 7% on Wednesday after the early-stage biotechnology company priced an $180 million public offering of 3 million shares of its common stock at $60 each, representing a 4.7% discount to Tuesday's closing price. Underwriters also received an overallotment option to buy up to 450,000 additional shares. G1 expects to use net proceeds from the offering to advance its drug development programs and other general corporate purposes, which could include working capital, capital projects, investments or potential acquisitions.
In other sector news:
(+) Akcea Therapeutics ( AKCA ) rose nearly 5% on Wednesday after the biotech company working to develop new treatments for cardiometabolic diseases late Tuesday filed a preliminary prospectus for mixed shelf offerings of its common and preferred stock, warrants to buy additional shares and debt securities. Selected investors also may participate in future offerings, Akcea said. The company said net proceeds from any future offering would be used for working capital and general corporate purposes, including research and development as well as potential selling, general and administrative expenses.
(-) Principia Biopharma ( PRNB ) declined as much as 5% on Wednesday after saying underwriters for its Sept. 14 initial public offering of stock fully exercised their overallotment option to buy another 937,500 shares at the $17-per-share IPO price, generating an extra $15.9 million in net proceeds for the immunology and oncology company. After paying underwriter discounts and other offering expenses, the company is expecting to pocket around $110.6 million in net proceeds and plans to use around $50 million to complete phase II testing of its PRN1008 drug candidate as well as using $2 million to fund its obligations under its agreement with Sanofi ( SNY ) for its PRN2246 product candidate and $4 million to wrap up a phase I clinical trial of its PRN1371 drug candidate.