Palvella Therapeutics (NASDAQ:PVLA) shares rose sharply in premarket trade Thursday, advancing 9.6% to $140.96 and marking the highest level in three years after the company completed an upsized $200 million follow-on offering.
The Wayne, Pennsylvania-based specialist in rare skin disorders sold 1.6 million shares at $125 each on Wednesday as part of the offering.
The equity had already experienced significant momentum earlier in the week. On Tuesday, the stock jumped roughly 37% after Palvella reported that its therapy, Qtorin rapamycin, achieved the primary endpoint in a late-stage clinical trial targeting microcystic lymphatic malformations. Momentum continued into Wednesday, when shares gained another 6.8% to finish at $128.60 following the company’s announcement late Tuesday of a $150 million stock offering.
Palvella has indicated that net proceeds from the offering will be allocated, in part, to advancing development programs for Qtorin rapamycin and for Qtorin pitavastatin, which the company is developing for disseminated superficial actinic porokeratosis. The article describes disseminated superficial actinic porokeratosis as a form of porokeratosis resulting from abnormal skin cell growth often triggered by exposure to the sun’s ultraviolet rays. The company also noted that proceeds will be used for other corporate purposes.
A syndicate of firms acted as joint bookrunners on the transaction: TD Cowen, Cantor, Stifel, Mizuho, LifeSci Capital, Oppenheimer, Canaccord and H.C. Wainwright.
Summary of recent developments:
- Completion of an upsized $200 million follow-on offering after selling 1.6 million shares at $125 apiece.
- Prior clinical news: Qtorin rapamycin met the main goal in a late-stage study for microcystic lymphatic malformations, prompting a sizeable share-price gain.
- Company plans to direct net proceeds toward clinical development programs, including Qtorin rapamycin and Qtorin pitavastatin for disseminated superficial actinic porokeratosis, among other uses.
This sequence of clinical progress and capital raise drove notable intraday and premarket price action. The offering structure, pricing and bookrunner group were disclosed by the company as part of the transaction announcement.