BUZZ-Tarsus Pharma slides on $100 mln stock offering
Tarsus Pharmaceuticals' stock slides after a $100 million stock offering. The offering price represents a 16.3% discount to the stock's last close. The company plans to use the proceeds for the commercial launch of Xdemvy and the development of its dermatology and infectious disease prevention product pipeline. Tarsus shares have risen nearly 90% YTD and have gained 150% over the past 12 months.
** Shares of Tarsus Pharmaceuticals (TARS.O) down 10.9% at $34.06 premarket after overnight follow-on offering prices
** Co early Fri announces ~3.1 mln shares, including 312,500 pre-funded warrants, at $32 for $100 mln gross proceeds
** Offering price represents 16.3% discount to stock’s last close
** Co plans to use net proceeds to fund commercial launch of Xdemvy, its anti-parasitic eye drop, and develop its dermatology and infectious disease prevention product pipeline
** TARS shares on Tues rose 18.3% to $39.22 after co reported Q4 rev of $13.1 mln, well above LSEG consensus est of $5.7 mln, driven by Xdemvy net product sales
** Co on Feb 22 reported positive data from mid-stage trial for its Lyme disease drug
** Tarsus has 34.2 mln shares outstanding for $1.3 bln market cap
** Shares have risen nearly 90% YTD and have gained ~150% over the past 12 months through Thurs
** Goldman Sachs, BofA, Guggenheim and Oppenheimer are jt bookrunners for stock offering
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
