More Trouble at Idenix Pharmaceuticals (IDIX)
Idenix Pharmaceuticals (NASDAQ:IDIX) turned in poor earnings and released more bad news at the same time.
For the third quarter ended September 30, 2009, Idenix reported total revenues of $3.1 million, compared to total revenues of $2.1 million in the third quarter of 2008. Idenix reported a net loss of $11.7 million, or a loss of $0.18 per basic and diluted share, for the third quarter ended September 30, 2009, compared to a net loss of $16.9 million, or a loss of $0.30 per basic and diluted share for the third quarter ended September 30, 2008.
The company said it had cash to carry though the next 12 months, not a comforting thought.
IDIX also announced that Novartis Pharma AG has decided not to exercise its option to license IDX184, a novel liver-targeted prodrug of 2′-methyl guanosine nucleotide, for the treatment of HCV. As a result, Idenix retains the worldwide rights to develop, commercialize and license IDX184 without any further obligation to Novartis.
Shares are off 15% to $2.13 down from a 52-week high of $6.82.
Douglas A. McIntyre
BioHealth Companies Keep Raising Cash (MNKD, IDIX, ISPH, ARIA, ONTY, NBY, SOMX, ARNA, OXGN)
The appetite for biotech and emerging pharmaceutical companies to raise cash is almost a never ending line of companies. We have some offerings today and have seen many offerings and filings from companies to offer shares. These are just some of the filings and offerings we have seen.
MannKind Corporation (NASDAQ: MNKD) priced a secondary offering this morning of 7,400,000 shares of its common stock, and while the press release did not say what price the deal came at the syndicate group told us this went out at $7.35 per share. Chairman, CEO, and principal stockholder Alfred E. Mann is purchasing 1,000,000 of these shares from the underwriters, which brought in over $54 million before fees and commissions. MannKind shares are down 9.5% at $7.37. Its 52-week trading range is $2.00 to $9.25.
Idenix Pharmaceuticals Inc. (NASDAQ: IDIX) priced a secondary offering this morning of 7,248,936 shares of common stock at $3.14 per share to clear roughly $22 million before fees and commissions. Its shares are down over 14% at $3.15 today and its 52-week range is $1.86 to $10.10.
Inspire Pharmaceuticals, Inc. (NASDAQ: ISPH) priced a 22.2 million share secondary offering of common stock this morning at a price of $4.50 per share. This raised close to $100 million. Share are down 6% at $4.66 and the 52-week trading range is $1.68 to $5.80.
Ariad Pharmaceuticals Inc. (NASDAQ: ARIA) on Tuesday priced its public offering of 19,000,000 shares of common stock at $1.75 per share; the company said net proceeds after fees and commissions was roughly $30.9 million.
Oncothyreon Inc. (Nasdaq: ONTY) announced on Tuesday that it had obtained commitments from several investors for $15 million in a direct offering. The agreement was to purchase approximately 2.28 million shares of common stock and warrants to purchase approximately 684,000 shares of common stock for gross proceeds of approximately $15.0 million. The company noted that investors agreed to purchase the shares and warrants for $6.5775 per unit with each unit being one share of common stock and a warrant to purchase 0.30 shares of common stock and an exercise price of $6.5775 per share.
NovaBay Pharmaceuticals, Inc. (NYSE: NBY) filed this week with the SEC to offer up to $20,000,000 of any combination of common stock or preferred stock upon conversion of debt securities, common stock upon conversion of preferred stock, or common stock, preferred stock or debt securities upon the exercise of warrants. It market cap is a mere $48 million.
Somaxon Pharmaceuticals, Inc. (NASDAQ: SOMX) filed this week to cover for the resale of up to 10,212,750 shares of common stock (roughly $23 million) from time to time for existing security holders and certain transferees of the selling security holders. Roughly 5.1 million of these shares were issued in a private placement that closed on July 8, 2009; the additional 5.1 million shares are issuable upon a warrant exercise sold in the private placement which expire on July 8, 2016. If sold, none of the proceeds go back to NovaBay.
Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) filed on Monday to allow the resale from time to time of up to 28,000,000 shares of common stock by the selling stockholders from a July private placement. We will not receive any of the proceeds from the sale of these shares. If sold, none of the proceeds go back to Arena.
OXiGENE, INC. (NASDAQ: OXGN) filed this week for the resale of up to 10,000,000 shares of common stock from time to time by Symphony ViDA Holdings LLC. This was via an amendment dated as of July 2, 2009. If sold, none of the proceeds go back to OXiGENE.
JON C. OGG
AUGGUST 5, 2009
The World Keeps Getting Worse For Idenix (IDIX)
Just when it looked like things could not get worse at Idenix Pharmaceuticals (IDIX). The firm announced the pricing of an underwritten offering of 7,248,936 shares of its common stock at a price of $3.14 per share. After underwriting discounts and commissions and estimated offering expenses, the company expects to receive net proceeds of approximately $21.2 million.
The news knocked the shares down 14% to $3.15.
IDIX traded at almost $5 on July 20. Its earning for the last quarter killed the shares. For the second quarter ended June 30, 2009, Idenix reported total revenues of $2.4 million, compared to total revenues of $1.6 million in the second quarter of 2008. Idenix reported a net loss of $16.3 million, or a loss of $0.28 per basic and diluted share, for the second quarter ended June 30, 2009, compared to a net loss of $18.9 million, or a loss of $0.34 per basic and diluted share for the second quarter ended June 30, 2008.
The results were below expectations and JMP Securities downgraded that stock.
At least there is some chance that things won’t get worse now.
Douglas A. McIntyre
Biotech Winners & Losers
It doesn’t matter if it’s a bull market or a bear market for biotechs, well at at least for the most part. Every day there are select winners and losers. A bull market won’t save a one-hope wonder that fails Phase III trials, and a bear market won’t keep down the company that ends up with the new budding cancer cure. He are some from today:
BIOTECH WINNERS
- SGX PHARMACEUTICALS (SGXP) +125.55%
- BIOHEART, INC. (BHRT) +11.51%
- COMPUGEN LTD (CGEN) +9.43%
- DARA BIOSCIENCES (DARA) +8.03%
- SUNESIS PHARMACEUTIC (SNSS) +7.68%
- CHELSEA THERAPEUTICS (CHTP) +7.00%
- PLURISTEM THERAPEUTC (PSTI) +6.84%
- INCYTE CORP (INCY) +6.44%
BIOTECH LOSERS
- NEUROBIOLGL TECH INC (NTII) -19.23%
- HEMISPHERX BIOPHARMA (HEB) -13.08%
- REXAHN PHARMACEUTICL (RNN) -13.04%
- HESKA CORPORATION (HSKA) -9.76%
- IDENIX PHARMACEUT (IDIX) -8.96%
Jon Ogg
July 9, 2008
