Idera Pharmaceuticals Inc (NASDAQ:IDRA)
Idera Pharmaceuticals Inc (NASDAQ:IDRA) stock failed to hold early gains and end the trading session higher for the fourth day in a row. IDRA shares ended at $1.56 after gapping up to open the session at $1.72, which was also the high for the day. Volume was heavy – over three times the 30-day, daily average.
IDRA stock had plummeted on October 26, after Idera Pharmaceuticals Inc (NASDAQ:IDRA) announced pricing a share offering at $1.50 – the previous close for IDRA shares was $2.03. The offering was for 33,333,334 shares of its common stock with a 30-day option to for the underwriters to purchase up to an additional 5,000,000 shares of common stock.
J.P. Morgan, Barclays, and Goldman Sachs & Co. LLC are the joint bookrunning managers on the $46.8 million transaction. H.C. Wainwright & Co. is acting as a co-manager on the transaction. Idera Pharmaceuticals Inc (NASDAQ:IDRA) intends to use the net proceeds to advance the development of IMO-2125 in its immuno-oncology program, for working capital, and for other general corporate expenses.
Idera Pharmaceuticals Inc (NASDAQ:IDRA)’s development program focuses on boosting the immune system to play a more powerful role in fighting cancer, and ultimately increase the number of people who can benefit from immunotherapy. Idera invests in research and development, and works with investigators and partners to address the unmet needs of patients who are suffering from rare, life-threatening diseases.
IDRA Stock Performance
JP Morgan, Wedbush Securities, Piper Jaffray, and Baird all follow Idera Pharmaceuticals Inc (NASDAQ:IDRA) and rate the shares as a “Strong Buy”. The listed consensus one-year price target is $5.75.
Year-to-date ODRA shares are up only 4% – far below the sector’s performance. For the year, IDRA stock is up 0.65% but over the past week, after the company priced the offering at $1.50, shares have lost over 28% of their value.
Idera Pharmaceuticals Inc (NASDAQ:IDRA) has posted per share losses since 2012 (-$0.81) but the trend has been favorable and the loss for 2016 was just (-$0.30). Last year the company posted their first significant sales figure of $16.2 million. The downside for investors has been the annual dilution as outstanding shares have increased every year since 2012 when the number of outstanding shares was 27.64 million. But by the end of 2016, and prior to the most recent share offering, over 127 million shares were listed as outstanding.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.