These stocks saw increased downside pressure on Thursday, despite the market rallying for the fourth day this week.
Dendreon (DNDN) fell 2.6% on during day trading despite announcing that the FDA approved its Los Angeles cancer immunotherapy manufacturing facility. The Los Angeles facility includes 36 workstations, and Dendreon will bring these new workstations online in a staged approach. Following the market close, the stock climbed 3.1% after the company announced that Medicare will cover Provenge. The Centers for Medicare and Medicaid Services issued a final National Coverage Decision (NCD) for Provenge, requiring Medicare contractors to cover the use of Provenge for treatment of asymptomatic or minimally symptomatic metastatic castrate resistant prostate cancer. The NCD will standardize coverage processes across the country for all Medicare patients with that condition and provides the local Medicare Administrative Contractors specific criteria, consistent with the label, on how Provenge should be covered.
Syntroleum (SYNM) tumbled nearly 26% after it announced the pricing of its common stock offering. The company announced that its offering of 15.9 million shares and warrants to purchase up to 7.95 million shares of its stock, were offered at a price of $1.58 per share. Each share of common stock is being sold together with 0.5 of a 5 year warrant to purchase one share of common stock at an exercise price of $2.36. The gross proceeds to Syntroleum from this offering are expected to be approximately $25.1 million from the sale of common stock and an additional $18.8 million if all the warrants are exercised.
Cell Therapeutics (CTICD) closed down 19.6% after announcing a sale of its preferred stock combined with warrants for its common stock. The company said that it entered into an agreement to sell $30 million of shares of its Series 13 Preferred Stock and warrants to purchase shares of its common stock in a registered offering to six institutional investors. Each share of Preferred Stock is convertible at the option of the holder, at any time during its existence, into approximately 588 shares of common stock at a conversion price of $1.70 per share of common stock, for a total of approximately 17,647,059 shares of common stock. Investors also received warrants to purchase up to 8.82 million shares of common stock. The warrants have an exercise price of $2.15 per warrant share. The warrants are exercisable beginning six months and one day after the date of issuance and expire five years and one day after the date of issuance.
Fertilizer stocks Mosaic (MOS), CF Industries (CF), and Agrium (AGU) were under pressure are the USDA's June acreage report said that more corn was planted that analysts expected. The agency said that U.S. farmers planted 92.3 million acres to corn in 2011, up 4.6% y/y, driven by the higher commodity prices. This is a third consecutive year of increased corn acreage and is the second-largest corn acreage in more than 60 years, behind 2007. Overall, farmers planted 319.2 million acres to major crops this year. This is 4.63 million acres less than they indicated in the March 2011 Prospective Plantings report, but is a 2.45 million acres increase from 2010. Despite an overall acreage increase for major crops, U.S. soybean growers planted 2.2 million fewer acres than last year. A total of 75.2 million acres have been planted to soybeans in 2011, the lowest since 2007.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.