Half empty glass
Regeneron (REGN) left more than $120 million on the table in its Thursday follow-on. The company, which has compounds in development for obesity, rheumatoid arthritis and other diseases, raised $77.4 million through the sale of 2.6 million shares at $29.75. The sum is a far cry from the $201.2 million REGN could have raised had it sold the proposed 4 million shares at its price prior to filing of $50.297. The deal was underwritten by Merrill Lynch; Lehman Brothers; J.P. Morgan; and Robertson Stephens. REGN was down $1 to $28.688 on Thursday.
Pharmacogenomics play Visible Genetics (VGIN) also experienced the softening follow-on market. VGIN raised $76 million through the sale of 2 million shares at $38 underwritten by Robertson Stephens; PaineWebber; Warburg Dillon Read; and Roth Capital Partners. Had VGIN sold the shares at its $83.50 price prior to filing on March 13, the company would have raised $167 million. VGIN was down $3.813 to $36.375 on Thursday. ...