Cempra Inc (NASDAQ:CEMP), a clinical-stage pharmaceutical company focused on developing antibiotics to meet critical medical needs in the treatment of bacterial infectious diseases, today announced that it has priced an underwritten public offering of 4,166,667 shares of its common stock at a price of $24.00 per share for aggregate gross proceeds of approximately $100 million. Net proceeds after underwriting discounts and commissions and expenses of the offering are expected to be approximately $93.7 million. The company also has granted the underwriters a 30-day option to purchase up to an additional 625,000 shares, which would result in additional net proceeds of approximately $14.1 million, if exercised in full.
The company intends to use the net proceeds from the offering to fund the commercial launch of solithromycin in community acquired bacterial pneumonia (CABP) in the U.S., subject to the drug receiving FDA approval for such an indication, research and development activities, including the continued clinical and regulatory development of solithromycin in CABP and gonorrhea and Taksta in acute bacterial skin and skin structure infections (ABSSSI) and also for the chronic oral treatment of refractory infections in bones and joints, as well as for working capital and general corporate and administrative expenses. The offering is expected to close on or about January 12, 2016, subject to satisfaction of customary closing conditions.
J.P. Morgan Securities LLC is acting as lead active book-running manager and Jefferies LLC is acting as joint active book-running manager for the offering. Cowen and Company, LLC and Stifel, Nicolaus & Company, Incorporated are acting as lead managers and Needham & Company, LLC, Ladenburg Thalmann & Co. Inc. and WBB Securities, LLC are acting as co-managers. (Original Source)
Shares of Cempra closed yesterday at $24.74, down $3.99 or -13.89%. CEMP has a 1-year high of $46.99 and a 1-year low of $15.43. The stock’s 50-day moving average is $30.23 and its 200-day moving average is $32.51.
On the ratings front, Cempra has been the subject of a number of recent research reports. In a report issued on December 21, Needham analyst Alan Carr maintained a Buy rating on CEMP, with a price target of $48, which implies an upside of 94.0% from current levels. Separately, on November 16, Morgan Stanley’s Andrew Berens upgraded the stock to Buy and has a price target of $38.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alan Carr and Andrew Berens have a total average return of 21.0% and 15.5% respectively. Carr has a success rate of 51.4% and is ranked #37 out of 3630 analysts, while Berens has a success rate of 69.6% and is ranked #464.
Overall, one research analyst has assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $42.00 which is 69.8% above where the stock closed yesterday.
Cempra Inc is a clinical-stage pharmaceutical company. It develops antibiotics for acute care & community settings to meet critical medical needs in treatment of bacterial infectious diseases, respiratory tract & chronic staphylococcal infections.