Dendreon (DNDN) sank 7% after the Seattle-based biotech set plans to raise $75 million in a private placement of convertible notes.
The convertible senior subordinated notes due 2014 will be sold through a private placement to qualified institutional buyers under rule 144A. The interest rate, terms of conversion, offering price, registration rights and other terms of the notes will be determined by negotiations between the company and the initial purchaser of the notes.
The news comes just days after Dendreon shares ran up on news of a regulatory timeline update on its Provenge prostate cancer vaccine.
Dendreon dropped 60 cents early Monday to $7.50.