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PTC Therapeutics announces pricing of public offering
Posted on Thursday, 19 September 2019 13:22
PTC Therapeutics, a US-based biopharmaceutical company, announced it was selling 2.48 million shares at USD 40.40 apiece, before underwriting discounts and commissions. In addition, the business also priced its private offering of convertible senior notes at USD 250.00 million, with the initial purchaser being given a 30-day option to buy an additional USD 37.50 million. These two announcements resulted in a 11.3 per cent decline in PTC Therapeutics’ share price to USD 38.43 yesterday, and a market capitalisation of USD 2.27 billion. In terms of the public offer, the company is expecting to raise a total USD 115.00 million if the overallotment option of an additional 371,287 shares are issued to Credit Suisse, the sole underwriter to the deal. The transaction represents a 6.0 per cent discount to PTC Therapeutics’ stock price of USD 42.97 on 16th September, the last trading day prior to the initial announcement regarding the sale. Completion is slated for around 20th September 2019, subject to customary conditions, but not contingent on the sale of convertible notes. In this part of the deal, the notes are expected to mature on 15th September 2026, unless earlier converted, redeemed or repurchased and will bear an interest rate of 1.5 per cent per year. Once again, the private sale is likely to close tomorrow. PTC Therapeutics is focused on the discovery, development and commercialisation of clinically-differentiated medicines for patients with rare disorders. The company has two marketed products for treating Duchenne muscular dystrophy (DMD), known under their brand names Translarna and Emflaza. In the six months to 30th June 2019, PTC Therapeutics generated revenue of USD 139.11 million, an 11.5 per cent increase from USD 124.81 million in the corresponding period of 2018. However, the Motley Fool noted the slow growth rate could soon change as Emflaza has been approved by the US Food and Drug Administration to treat patients with DMD between the ages of 2 and 5 years old. PTC Therapeutics also recorded a loss from operations of USD 107.90 million in H1 2019, which has widened significantly from a loss of USD 22.32 million in H1 2018. © Zephus Ltd