Repros and Targacept have announced plans to offer shares in their respective companies at a reduced cost. Both pharmaceutical companies are seeking additional capital to fund their drug development pipelines.
Repros will sell 3.5 million common shares at $1.27 apiece to institutional investors for gross proceeds of about $4.4 million, Reuters reports. In August, the Woodlands, TX-based company announced that it did not have enough money to fund ongoing operations. The company needed a short-term infusion of cash to avoid bankruptcy and dissolution. On Tuesday, Repros announced data from a small exploratory study of its experimental testosterone drug, Androxal. The drug restored normal sperm count and increased testosterone levels in men with secondary hypogonadism, or low testosterone levels. Shares in Repros had increased nearly 300 percent following the announcement.
Targacept will publicly offer 2.2 million shares at $21 apiece, about 7 percent below the stock’s earlier close of $22.50. The stock was one of the biggest percentage losers on Nasdaq on Thursday, trading down $1.50 to $21. Targacept shares had previously gone up about 800 percent in the past three months. If all shares are sold, it will raise approximately $46.2 million for the Winston-Salem, N.C.-based company. In July, Targacept reported that its drug candidate to treat depression disorders had performed well in a Phase IIb study.