Atossa Genetics Inc. (NASDAQ:ATOS)
Atossa Genetics Inc. (NASDAQ:ATOS) felt the wrath of Wall Street after announcing the pricing of a $5.1 million public offering of common stock. Shares of the clinical stage pharmaceutical company fell 46.9%, to end Thursday’s trading session at $0.45 a share.
Public Offering Reaction
The company has priced 11.5 million shares of common stock at a public offering price of $0.44 a share. Atossa Genetics Inc. (NASDAQ:ATOS) has also granted underwriters an overallotment option for the purchase of 1 million additional shares of common stock. Gross proceeds before deduction of underwriting discounts, commissions, and other estimated offering costs should be about $5.1 million.
Atossa Genetics Inc. (NASDAQ:ATOS) plans to use net proceeds from the offering for general corporate purposes. The offering should close on or about October 30, 2017.
The $5.1 million public offering appears to have spooked investors as the stock dropped from $1.50 a share to $0.45. Following the slump, the stock is now down by more than 40% for the year.
Oral Endoxifen Trials
The pricing of the public offering comes just days after the clinical stage pharmaceutical company announced preliminary results from its Phase 1 study of Oral Endoxifen. The company is investigating the drug for the treatment of recurrent breast cancer.
Trial results indicate that Endoxifen met all its objectives with no clinically significant safety signals or adverse events reported. Oral Endoxifen was also well tolerated at each dose levels. According to Atossa Genetics Inc. (NASDAQ:ATOS), the study results demonstrate the sustainability of oral Endoxifen for further clinical development.
“Based on these positive preliminary results, we are advancing our oral Endoxifen into Phase 2 studies,” commented Dr. Steven C. Quay, CEO, and President. “We expect our initial Phase 2 study will be in women who are refractory to Tamoxifen and we expect to begin that study in the first quarter of 2018,” continued Dr. Quay.
Estimates indicate that about 250,000 women will be diagnosed with breast cancer in the U.S this year with 40,000 expected to die. Breast cancer is the second leading cause of cancer death in the US. Atossa Genetics Inc. (NASDAQ:ATOS) estimates the potential market for its oral and tropical formulation of Endoxifen if approved at over $1 billion.
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.