Deciphera’s $400M follow-on adds firepower on strength of GIST readout

Outsized investor demand continues unabated for stocks of companies with late stage clinical success stories, as evidenced by Deciphera’s ability to double the size of its follow-on to $400 million with little to no haircut despite turbulent macroeconomic headwinds.

On the strength of a gastrointestinal cancer readout that led to an 80% gain in its share price Tuesday, Deciphera Pharmaceuticals Inc. (NASDAQ:DCPH) proposed after the bell to raise $200 million. Rather than absorbing the customary dip due to dilution, however, Deciphera’s shares instead rose 5% to $37.87 during Wednesday’s trading session, even amid fresh signs of a global economic slowdown and a signal from bond markets warning of recession...