After the bell on Thursday, specialty biotech drug developer Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL) said it agreed to sell about 3.7 million shares of stock for $14.50 per share to some institutional investors. The offer is supposed to net proceeds of about $49.9 million, which will be used for general corporate purposes, including working capital, product development and capital expenditures.
The offering is expected to close on or before June 13. AUXL stock price reacted very favorably to the news on Friday, posting a 7.44% gain up $1.08 to $15.59. AUXL was featured by Biotechinvestor.com just last week.
If you happened to buy this stock just last week in the mid-14’s you may want to take some profits and repurchase the stock at a later time. Although the stock price has plenty of room to move higher long-term, its near-term movement should hover around the $14.50 institutional sale price. So, be cautious in the near-term, but because the company seems poised for long term growth, I would be a buyer anytime the stock crosses significantly below the 14.50 institutional sale price.
- Auxilium Pharmaceuticals: Not Just a Scar Tissue Play
- Auxilium Completes Phase 3 Enrollment, Analyst Downgrades!