Cadence Announces Sale of $75 Million of StockWednesday, November 16, 2011
Cadence Pharmaceuticals Inc., a San Diego-based biopharmaceutical company focused on uses in the hospital setting, said it plans to sell $75 million of stock to raise money to expand the reach of its only product — an injectable acetaminophen drug called Ofirmev — and for other corporate purposes.
On Nov. 15, the company said it has priced 19 million shares at $3.75 each in an offering expected to close Nov. 18, and that it has given the underwriters a 30-day option to buy up to an additional 2.8 million shares to fulfill any excess demand.
Cadence expects to see net proceeds of about $67.4 million.
Cadence kicked off U.S. sales of Ofirmev in January 2011.
For the third quarter of 2011, net sales of Ofirmev, were $3.5 million, up 105 percent from the $1.7 million in the second quarter of 2011.
Shares of Cadence, which trade on Nasdaq as CADX, were at $3.81 on the afternoon of Nov. 15, down 16 cents from the previous day’s closing price. Shares dropped 21.5 percent Nov. 14 after the company announced the offering.
Deutsche Bank Securities Inc. is acting as sole book-running manager, Leerink Swann LLC is acting as co-lead manager and Cowen and Co. LLC is acting as co-manager for the offering.
— Kelly Quigley