Portola Pharmaceuticals (NASDAQ:PTLA) today announced that it would offer $200 million USD of its common stock in an underwritten public offering. PTLA stock fell 1.7% to $30.11 off the back of the announcement.
PTLA Stock Offering
Portola is a San Francisco-based pharmaceuticals company that specializes in the research, development, and commercialization of drugs used in the treatment of thrombosis and hematological malignancies. The company also announced that it expects to grant the underwriters a 30-day option to purchase up to an additional $30 million of its common stock in connection with the offering.
PTLA stock hit a 52-week low of $15.80 last December but enjoyed a strong first half to 2019 following FDA approval of the company’s Andexxa manufacturing process, which saw PTLA shares gain over 140% in the first quarter.
Last week, Portola announced total revenues for the second quarter of 2019 were $28.4 million, compared with $4.0 million for the second quarter of 2018. Net loss was $66.2 million, or $0.97 net loss per share for the second quarter of 2019, compared with a net loss of $106.2 million, or $1.61 net loss per share, for the same period in 2018. These positive results saw an increase of 23.4% to PTLA stock; however, today’s announcement has been greeted with less optimism by investors as the company’s share price slumped.
Also last week, Portola Pharmaceuticals announced the company’s first sales of Ondexxya in Europe. These sales mark the beginning of the product’s commercial access to Europe, which is the first reversal agent approved for adult patients treated with Factor Xa inhibitors when reversal of anticoagulation is needed due to life-threatening or uncontrolled bleeding. The worldwide use of Factor Xa inhibitors is increasing due to their efficacy and safety compared to similar treatments in preventing and treating thromboembolic conditions such as stroke and pulmonary embolism.
This increasing demand for Portola’s product, coupled with FDA approval for use in the US, can only be good news for PTLA stock in the long term.
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