Exelixis, Inc. (NASDAQ:EXEL) announced that it plans to offer, subject to market and other conditions, 20,000,000 shares of its common stock in an underwritten public offering. The company expects to grant the underwriters a 30-day option to purchase up to an additional 3,000,000 shares of common stock in connection with the offering. All of the shares of common stock in the offering will be sold by Exelixis.

Cowen and Company, William Blair and Stifel are acting as bookrunners for the offering. The offering is being conducted by means of a prospectus supplement filed as part of a shelf registration statement previously filed with the Securities and Exchange Commission (SEC) on Form S-3. (Original Source)

Shares of Exelixis shares are trading down 3.4% to $5.68 following the public offering announcement. EXEL has a 1-year high of $6.08 and a 1-year low of $1.26. The stock’s 50-day moving average is $3.65 and its 200-day moving average is $2.89.

On the ratings front, Piper Jaffray analyst Edward Tenthoff maintained a Hold rating on EXEL, with a price target of $6, in a report released yesterday. The current price target represents a slight downside potential from current levels. According to TipRanks.com, Tenthoff has a total average return of 29.8%, a 63.3% success rate, and is ranked #141 out of 3711 analysts.

Exelixis Inc is a biotechnology company that develops small molecule therapies for the treatment of cancer.