Massachusetts-based biopharmaceutical company Verastem Inc. (NASDAQ:VSTM) announced on Thursday that it would be offering approximately seven million shares of the company’s common stock to Consonance Capital (private).
Shares of the company rose over 15% on Friday, as the company announced its decision after the market had already closed on Thursday.
Verastem Inc., also known as Verastem Oncology, a company focused on developing and commercializing drugs for the treatment of cancer, will be selling its stock to Consonance Capital for nearly $43 million USD, or at approximately $6.00 per share.
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Shares of the company have already reached a high value of $6.61 and, as of 2:15 pm EDT, share value was hovering near $6.43. The company opened at a share value of $6.05 and have reached a low share value of $5.91.
The funds that Verastem Inc. receives are likely to go towards the company’s pipeline and more research on the development of drugs that will “improve the survival and quality of life of cancer patients.”
Consonance Capital will receive a total of 7,166,666 shares of Verastem’s common stock.
The offering is expected to close three days from now, on June 18, 2018.
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This is good news for Verastem Inc. as the company previously closed at a share value of $5.58 on Thursday, where they were able to reach a high share value of $5.73 and a low share value of $5.48.
Verastem is currently developing a dual inhibitor of PI3K-delta and PI3K-gamma, known as duvelisib. The Phase 2 study for duvelisib was able to meet its primary endpoint for the treatment of indolent non-Hodgkin lymphoma.
The company will be requesting approval from the US Food and Drug Administration (FDA) with a New Drug Application (NDA) request.
How else could Verastem Inc. benefit from this sale of its common stock to Consonance Capital?
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