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Shares of Celldex Therapeutics (CLDX) fell sharply on Wednesday, falling by over 10% on news that the company had priced a stock offering for well below the current trading price.

Once the offering is finalized, which is expected to take place by May 23rd, according to a Wednesday press release, Celldex will bank just about $30 million from the offering, money which will be used to fund the development of the pipeline.

The decline in price on Wednesday was accompanied by volume that was roughly 10 times the daily trading average.

Wednesday's 10 percent-plus cut in price put CLDX just above the lows hit after Pfizer backed out of a two year old licensing deal last year for Celldex's most advanced product candidate, CDX-110 (now known as rindopepimut), an immunotherapeutic treatment for one of the most aggressive forms of brain cancer.

According to statements made by Pfizer (PFE) at the time of the licensing divorce, the company decided that CDX-110 did not fit into Pfizer's strategic future. Investors took to those statements for what they were worth, and shares again rebounded in short time to above the four dollar mark.

Celldex didn't miss a beat in the immediate aftermath of the Pfizer divorce, and initiated new trials for its flagship product, although concerns about funding were sure to become an issue in the post-Pfizer era, so the announcement of a stock offering this week should come as no surprise. When Pfizer left, so did the funding line.

That said, the potential of CDX-110 remains in tact, with or without a big-named partner. Some may have speculated that the reason for Pfizer backing out was because the company was not overly impressed with early trial results for 110, but it's also just as likely that Pfizer decided that its investment was a bit over valued for its time.

With a pipeline that boasts multiple cancer treatments, and an earlier-stage pipeline geared towards inflammatory and infectious diseases, CLDX again looks like a solid speculative buy, especially given this drop down towards the $3 mark.

Considering that earlier this week, the stock was trading for closer to four dollars, this one looks like a pretty good buy right now.

Take a look. With the success of Dendreon (DNDN) now documented, hard attention will be paid to these cancer immunotherapy stocks.

Source: Celldex Dip May Have Opened Up a Big Buying Opportunity