Summit Therapeutics Stock Gets Smoked After IPO Pricing
Biotechs in focus.

Plans for follow-on offerings pushed down the shares of two biotechs Thursday, Sept. 14.

The American Depository Shares of Summit Therapeutics plc (SMMT) were down 15.74%, or $2.38, to $15.24 after the company focused on developing therapies for Duchenne muscular dystrophy and C. difficile infection, priced its upcoming public offering of 1.46 million ADSs at $12.00 per ADS. Each ADS represents five ordinary shares of Summit. Gross proceeds from the offering are expected to be approximately $17.5 million or approximately $20.1 million if the underwriters exercise in full their over-allotment option.  The offering is expected to close on or about September 18, 2017, subject to customary closing conditions. Canaccord Genuity Inc. and JMP Securities LLC are acting as joint lead book-running managers for the offering. Needham & Company, LLC is acting as lead manager and H.C. Wainwright & Co., LLC is acting as co-manager.

Also falling was Epizyme Inc.  (EPZM) , down 5%, or 80 cents, to $15.15, after pricing an upcoming offering of 9.2 million shares at $15.25 each. Underwriters over-allotment is an additional 1.4M shares. Net proceeds from the $120 million offering will help fund development and commercialization of tazemetostat, which has been designated by the FDA as an orphan drug for the treatment of soft tissue sarcoma. Closing date is expected to be September 18. Morgan Stanley, Jefferies and Leerink Partners are acting as joint book-running managers for the proposed offering.

Vanda Pharmaceuticals Inc.  (VNDA) fell 5.88%, or $1, to $16.00 after announcing that its dermatitis drug tradipitant showed mixed results in a mid-stage study. Vanda said tradipitant showed in patients with atopic dermatitis with chronic pruritus (itching) showed a clinically meaningful and statistically significant treatment effect on a number of measures but fell short on others. Vanda licensed tradipitant, an NK-1R antagonist, from Eli Lilly in April 2012. It plans to meet with the FDA to clarify the next steps in development.

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