Bellerophon Therapeutics Inc (NASDAQ:BLPH) investors are heading for the hills after the drug maker announced announced the pricing of a public offering with expected total gross proceeds of approximately $12 million. The offering was priced at $0.70 per Class A Unit (consisting of one share of our common stock and a warrant to purchase one share of our common stock), a 7% discount to yesterday’s closing price. Each warrant will have an exercise price per full share of common stock equal to $0.80, will be immediately exercisable and will expire five years from the date on which such warrant becomes exercisable.
The public offering would dilute shareholders’ investments, and as such Bellerophon shares are currently dropping nearly 20% in Wednesday’s trading session. The offering is expected to close on or about November 29, 2016, subject to satisfaction of customary closing conditions.
On the ratings front, Bellerophon has been the subject of a number of recent research reports. In a report issued on November 15, Leerink Swann analyst Jason Gerberry reiterated a Buy rating on BLPH, with a price target of $5.00, which implies an upside of 614% from current levels. Separately, on November 8, Cowen’s Ritu Baral reiterated a Buy rating on the stock and has a price target of $12.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Gerberry and Ritu Baral have a yearly average loss of 9.0% and a return of 4.3% respectively. Gerberry has a success rate of 26% and is ranked #4097 out of 4240 analysts, while Baral has a success rate of 39% and is ranked #719.
Bellerophon Therapeutics, Inc. engages in developing products at the intersection of drugs and devices. Its products are using in the treatment of cardiopulmonary and cardiac diseases. The company engages in two programs including INOpulse and BCM. INOpulse is based on proprietary pulsatile nitric oxide delivery device. BCM is based on placebo-controlled clinical trial designed to support CE mark registration in the European Union.