What happened
Actions of BioNTech (NASDAQ: BNTX) 14.5% were sinking as of 2:48 pm EDT on Thursday. The decline came after German biotech announced the price of a larger offering of shares on Wednesday night.
And that
BioNTech said Wednesday that it plans to sell 5.5 million US Depositary Shares (ADS) at $ 93 a share. The transaction will generate gross income of $ 511.5 million. The company had previously indicated that its share offering would include 5 million ADS.
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The price reflects a 10.7% discount from the closing price of biotech stocks on Wednesday. This lower price practically guaranteed a massive sale today.
However, BioNTech has enjoyed a lot of good news recently. The company and its partner. Pfizer (NYSE: PFE), announced Monday positive results from a phase 1/2 study of the COVID-19 BNT162b1 vaccine candidate. On Wednesday, the two companies announced an agreement to sell 100 million doses of their COVID-19 vaccine to the United States government for $ 1.95 billion, pending authorization or approval by the Food and Drug Administration.
Now what
The BioNTech share offering is expected to close on July 27. However, the most important thing to consider with the company is the clinical progress of its BNT162 program. Pfizer and BioNTech plan to start a phase 2b / 3 clinical study later in July. The two companies hope to apply for regulatory approval as soon as October of this year.
