Regulus Therapeutics Inc (NASDAQ:RGLS)
Regulus Therapeutics Inc (NASDAQ:RGLS) edged lower in Thursday’s trading session after announcing the pricing of a public offering of common stock as it looks to raise funds for ongoing clinical programs. The public offering push also seeks to raise money for capital expenditure, working capital, and other general corporate purposes. The stock was down by 8.33% to end the day at $0.88 a share.
Thursday’s sell-off does not come as a surprise given that the stock has been on a downtrend ever since it reached its 2014 highs of $22.08 per share. Disappointments on the clinical trial front have seen the company’s market cap plunge from highs of $1.1 billion in 2014 to current lows of $49 million.
The stock is on the brink of registering a new lower low as it continues to trade in a tight $0.86 to $0.94 a share trading range, fast closing in on 52-week low of $0.86 a share.
Regulus Therapeutics Inc (NASDAQ:RGLS) is a biopharmaceutical company focused on the discovery and development of drugs that target microRNAs for the treatment of various diseases. The company is currently working with Biogen Inc (NASDAQ:BIIB) on the discovery of microRNAs as biomarkers for multiple sclerosis.
The company is also working on RG-012 an anti-miR targeting microRNA-21 for the treatment of Alport syndrome and TGLS326. However, it appears the company has hit a snag when it comes to finances needed to complete the ongoing clinical trials.
The biopharmaceutical company expects net proceeds of $37.3 million after deduction of underwriting discounts and commissions in the upcoming public offering. The company is offering 44 million shares of its common stock at the public offering which is set to close on July 25, 2017. Underwriters have also been granted 30-day option for the purchase of additional shares.
Separately, Chardan analyst, Madhu Kumar, has slashed his share price target on Regulus Therapeutics Inc (NASDAQ:RGLS) to $2.50 from $5 a share. The move comes on the drug maker announcing the cessation of three clinical programs. However, the analysts maintains a ‘buy’ rating on the stock on optimism that the company’s lead drug RG-012 for the treatment of Alport Syndrome has a favorable risk/benefit profile.
“The phase II HERA trial is expected to provide renal biopsy data by year end-2017 and interim efficacy data by mid-2018,” and highlights the drug maker’s future is strongly linked to RG-012 performance, said Mr. Kumar.
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.