Amylyx Pharma starts $350 mln equity offering to fund blood sugar drug
AMLX•Amylyx launches $350 million stock offering after trial success
Amylyx Pharmaceuticals AMLX.O looks to capitalize on its soaring stock price by raising equity.
AMLX shares finished up 63.8% at $35.11 on Tuesday after its blood sugar drug, avexitide, met the main goal of improving post-bariatric hypoglycemia in a late-stage trial.
After the bell, the Cambridge, Massachusetts-based firm kicked off a $350 million stock offering.
It intends to use the net offering proceeds for pre-commercial activities for avexitide, research and development, and other purposes.
Leerink, Morgan Stanley, Guggenheim and LifeSci are joint bookrunners.
AMLX shares, up about 3% post-market, have nearly tripled year to date, giving the company a market cap of roughly $4 billion.
Eleven of 12 analysts rate the stock "strong buy" or "buy" and one rates it "hold"; the median price target is $40, according to LSEG.
