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Advaxis tumbles after pricing secondary offering at a discount

The biotech is offering 2.5 million shares of its stock at price of $4 per share, which is substantially below Tuesday’s closing price of $5.90

stock moving higher
The biotech hopes to use the proceeds from its latest offering to fund its pipeline of anti-cancer therapies

Shares of Advaxis Inc (NASDAQ:ADXS) tumbled Wednesday after the biotech priced a secondary offering to fund its research and raise up to $10 million at a sharp discount.

The Princeton, New Jersey company is offering 2.5 million shares of its stock at a price of $4 per share, which is substantially below Tuesday’s closing price of $5.90.

Advaxis’s stock price has been artificially boosted in recent days by a 1-for-15 reverse stock split which took effect late last month.

READ: Advaxis rockets after promising data from key prostate cancer study unveiled

Investors failed to applaud the offering’s terms, sending Advaxis shares down 30% to $4.10 in morning trade.

The biotech hopes to use net proceeds from its latest offering to fund its ADX-HOT neoantigen-directed program for new cancer types as well as invest in ADX-PSA, its treatment for prostate cancer, and ADXS-NEO which takes aim at multiple cancers.

Advaxis won applause earlier in the week from investors after unveiling promising data from a Phase 1/2 Keynote-046 evaluating its cancer immunotherapy ADXS-PSA for the treatment of advanced prostate cancer.

The 50-patient study is evaluating ADX-PSA alone as a treatment for metastatic prostate cancer, and in combination with Keytruda, Merck's blockbuster anti-PD-1 cancer therapy.

The data for 37 patients taking part in the study showed a median overall survival rate of 21.1 months, which compares favorably to traditional therapies.

News of the promise of clinical findings for ADXS-PSA comes on the heels of preliminary data from a Phase 1 trial of ADX-NEO, another of the company’s cancer immunotherapies, showing “substantial” anti-tumor activity.

Data from both studies were presented at the American Association for Cancer Research’s annual meeting taking place this week in Atlanta, Georgia.

Contact Ellen Kelleher at [email protected]

Quick facts: Advaxis

Price: 0.616 USD

NASDAQ:ADXS
Market: NASDAQ
Market Cap: $37.11 m
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