CAMBRIDGE, Mass. ( TheStreet) -- Vertex Pharmaceuticals ( VRTX - Get Report) is addicted to two things -- spending money and raising the same. Tonight, it's trying to do the latter. Vertex announced a follow-on stock offering of 10 million shares with a 1.5 million-share shoe. If Vertex sells the entire deal at today's closing price of $39.49, the financing grosses the company more than $450 million.
I've heard the deal is done but I don't have confirmation of that yet. Clearly, Vertex is taking advantage of its strong stock to pad the corporate piggy bank. The company's stock price has surged in the past month -- boosted by investor confidence in its experimental hepatitis C drug telaprevir -- and has been trading near or at its two-year high of around $40. The cost to existing Vertex shareholders is more dilution, of course.
Dyax shares hit $5 in after-hours trading Tuesday after closing the regular session at $3.50. FDA also approved an over-the-counter version of the heartburn medicine Zegerid marketed by Merck ( MRK - Get Report). The drug utilizes technology from Santarus ( SNTS), which will receive $20 million for the Zegerid OTC approval plus a low, double-digit royalty on sales. Zegerid OTC contains a 20 mg dose of the medicine omeprazole (the active ingredient in Prilosec.) Santarus continues to sell a 40 mg version of Zegerid that contributes about 95% of prescriptions for the drug. Santarus shares closed Tuesday at $4.29 but surged 36% in the after-hours session. -- Reported by Adam Feuerstein in Boston