Company Update (NASDAQ:DRRX): DURECT Corporation Announces Proposed Public Offering of Common Stock
DURECT Corporation (NASDAQ:DRRX) announced that it is offering, subject to market conditions, shares of its common stock in an underwritten public offering. DURECT anticipates using the net proceeds from this offering for general corporate purposes, which may include clinical trials, research and development activities, capital expenditures, selling, general and administrative costs and to meet working capital needs. All of the shares in the offering are to be sold by DURECT.
Stifel is acting as sole book-running manager for the proposed offering.
Felix Theeuwes, our Chairman and Chief Scientific Officer, and David Hoffmann, one of our directors, have indicated an interest in purchasing shares of our common stock with an aggregate purchase price of up to approximately $400,000 in this offering at the public offering price. (Original Source)
Shares of DURECT are down nearly 6% to $1.34 in after-hours trading. DRRX has a 1-year high of $3.42 and a 1-year low of $0.99. The stock’s 50-day moving average is $1.34 and its 200-day moving average is $1.67.
The news came in just a few hours after Rodman & Renshaw analyst Ram Selvaraju initiated coverage on the stock with a Buy rating and a $4 price target. According to TipRanks.com, Selvaraju has a yearly average return of 4.5%, a 48% success rate, and is ranked #600 out of 3828 analysts.
DURECT Corp. is a specialty pharmaceutical company, which engages in development of pharmaceutical products for pain and chronic diseases based on its proprietary drug delivery technology platforms. It manufactures and sells osmotic pumps used in laboratory research, and designs, develops and manufactures a wide range of biodegradable polymers and excipients for pharmaceutical and medical device clients for use as raw materials in their products. The company also conducts research and development of pharmaceutical products in collaboration with third party pharmaceutical and biotechnology companies. DURECT was founded by James E. Brown and Felix Theeuwe on February 6, 1998 and is headquartered in Cupertino, CA.