Bad News Follows Good for Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) Shareholders

Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH)

Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH)

Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) announced positive top line results for its Phase 3 clinical trial and saw its shares rise by over 14%. However, after today’s close, Tetraphase Pharmaceuticals Inc(NASDAQ:TTPH) announced a dilutive $60 million offering of its common shares. Shares are down over 7% in the after-hours market on news of the offering.

Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH)
1 Month Daily Candle Bar Graph for $TTPH

On Tuesday, Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) announced that its lead experimental antibiotic for serious bacterial infections met its primary endpoints in a late-stage study. Tetraphase said the antibiotic, eravacycline, was being studied in a pivotal 500 patient late-stage study for intra-abdominal infections. Tetraphase said the drug showed statistically significant improvement in curing patients with intra-abdominal infections, compared to patients who were treated with Medicines Co’s drug, meropenem. Eravacycline is a synthetic tetracycline derivative for drug-resistant bacterial infections administered intravenously in hospital. The company plans to submit a marketing application for the drug to the U.S. Food and Drug Administration by the first quarter of 2018. Tetraphase expects to also apply for European approval by the third quarter of this year.

Today, after the market closed, Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) announced that it has commenced an underwritten offering of $60,000,000 of shares of its common stock. All of the shares of common stock to be sold in the offering will be offered by the company. Piper Jaffray, BMO Capital Markets and Stifel are acting as joint bookrunning managers for the offering, SunTrust Robinson Humphrey is acting as lead manager and H.C. Wainwright & Co. is acting as manager for the offering. Tetraphase intends to grant the underwriters a 30-day option to purchase up to an additional $9,000,000 of shares of its common stock on the same terms and conditions as the offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Despite rather consistent annual losses exceeding (-$2.00) per share, TTPH shares have performed well in the market. Shares have gained over 95% YTD, and are up nearly 90% for the year. Fie investment firms have their analysts follow Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH). Four rate the shares as a “Hold” and one rates the shares as a “Strong Buy”.

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.

Author: Monica Gray

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.

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