Amylyx dips after increased $500 mln stock sale to fund blood sugar drug

AMLX shares soared 64% to close at $35.11 on Tuesday after the company said its blood sugar drug, avexitide, met the main goal of improving post-bariatric hypoglycemia in a late-stage trial.

After the bell on Tuesday, the company commenced a $350 million stock offering to fund pre-commercial activities for avexitide, research and development, and other purposes; its stock rose another 10% on Wednesday.

Leerink, Morgan Stanley, Guggenheim and LifeSci were joint bookrunners for the stock offering.

Through Wednesday, AMLX shares had more than tripled year to date for about a $4.3 billion market cap. Eleven of 12 analysts rate the stock "strong buy" or "buy" and one "hold"; the median price target is $40, according to LSEG.

Shares of Amylyx Pharmaceuticals AMLX.O were down 1.4% at $38.07 before the bell after a $500.2 million follow-on was priced.

Cambridge, Massachusetts-based Amylyx last Wednesday sold about 14.1 million shares at $35.50, an 8% discount to the last sale.