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Spectrum announces USD 65mn public offering
Posted on Friday, 31 July 2020 09:29
US-based biopharmaceutical company Spectrum Pharmaceuticals is seeking USD 65.00 million in an underwritten public offering.
Under the terms of the cash call, the Nasdaq-listed business is offering 21.67 million shares of its common stock at a price of USD 3.00 apiece.
Jefferies and Cantor Fitzgerald & Co have been appointed as joint bookrunning managers for the sale and have also been granted a 30-day option to purchase an additional 3.25 million scrips.
Closing is scheduled for 3rd August 2020, subject to the usual raft of conditions.
Spectrum plans to use the net proceeds from the offering for general corporate purposes, including the continued development of its pipeline assets, sales and marketing activities, pre-launch activities, assets associated with Rolontis and potential business development initiatives.
The company is focused on acquiring, developing and commercialising novel and targeted oncology therapies.
Shares in Spectrum declined 20.4 per cent to USD 3.09 at 09:46 today, giving the group a market capitalisation of USD 451.90 million.
In the three months ended 31st March 2020, the company posted a net loss of USD 40.57 million, widened from a loss of USD 19.26 million in the corresponding period of 2019.
Spectrum sold seven hematology and oncology products assets to Acrotech Biopharma for USD 300.00 million on a debt and cash free basis last year.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 268 capital increases by pharmaceutical preparation manufacturers announced worldwide in 2020 to date.
In the largest of these, Sino Biopharmaceutical issued convertible bonds to raise EUR 750.00 million earlier this month.
Other targets included North China Pharmaceutical, Sinopharm Group, Shenzhen Hepalink Pharmaceutical Group and Shanghai Henlius Biotech.
© Zephus Ltd