These stocks were some of the biggest losers last week, despite the stock market rising nearly 6%.
Syntroleum (SYNM) tumbled nearly 27% after the company announced a stock offering and pricing for the offering. The company said that the offering of 15.9 million shares and warrants to purchase up to 7.95 million shares of its stock was 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.
Pain Therapeutics (PTIE) tumbled 24% last week, tumbling for the second consecutive week, after the company released additional information on the Remoxy FDA Complete Response Letter received the week before. The company said that the FDA's Complete Response Letter raised concerns related to, among other matters, the Chemistry, Manufacturing, and Controls section of the NDA for Remoxy.
Certain drug lots showed inconsistent release performance during in vitro testing. In the opinion of Pain Therapeutics, potential regulatory approval of Remoxy in the U.S. is unlikely to occur in less than one year, and could be delayed significantly longer than a year. Remoxy is an investigational extended-release oral formulation of oxycodone for the relief of moderate to severe pain requiring continuous, around-the-clock opioid treatment.
NovaBay (NBY) fell 21% after it announced that it entered into an agreement with investors for the sale of units consisting of one share of common stock and one warrant to purchase 0.75 of a share of common stock at a purchase price of $1.11 per unit. The warrants will be exercisable 180 days after issuance at $1.33 per share and will expire five years from the date of issuance. The shares of common stock and warrants are immediately separable and will be issued separately.
Tengion (OTCQB:TNGN) fell 19% after it announced that Steven Nichtberger resigned from his role as president, chief executive officer and member of the company's board. David Scheer, chairman of the board, will assume a more active role in guiding the company while an external search is conducted for a new chief executive officer.
Tengion also reaffirmed its previously disclosed plans of submitting additional clinical data and expected modifications to the surgical approach to the FDA during the third quarter for the Neo-Urinary Conduit, the company's lead clinical product candidate for use in bladder cancer patients requiring a urinary diversion following bladder removal. Tengion also reiterated its expectation of requesting a meeting with the FDA by the end of 2011 regarding the path to clinical trials for its Neo-Kidney Augment development program.