Company Update (NASDAQ:IDRA): Here’s Why Idera Pharmaceuticals Shares Plunged 12% Today
Idera Pharmaceuticals, Inc. (NASDAQ:IDRA) announced yesterday that it intends to offer and sell up to $50,000,000 of shares of its common stock in an underwritten public offering. In connection with this offering, Idera expects to grant the underwriters a 30-day option to purchase additional shares of common stock, equal to up to 15% of the number of shares of common stock sold in the offering. All of the shares in the offering are to be sold by Idera.
Idera intends to use the net proceeds from this offering, together with existing cash, cash equivalents and investments, to advance clinical development of certain of its programs.
The public offering would dilute shareholders’ investments, and as such Idera shares are currently dropping nearly 12% to $2.29 in per-market trading. IDRA has a 1-year high of $4.42 and a 1-year low of $1.19. The stock’s 50-day moving average is $2.16 and its 200-day moving average is $1.80.
On the ratings front, IDRA stock has been the subject of a number of recent research reports. In a report issued on September 26, Cowen analyst Boris Peaker reiterated a Buy rating on IDRA. Separately, on August 25, Wedbush’s Heather Behanna reiterated a Buy rating on the stock and has a price target of $6.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Boris Peaker and Heather Behanna have a total average return of 16.8% and 16.1% respectively. Peaker has a success rate of 50.0% and is ranked #141 out of 4190 analysts, while Behanna has a success rate of 46% and is ranked #485.
Idera Pharmaceuticals, Inc. is a clinical stage biotechnology company, which is engaged in discovery, development and commercialization of novel nucleic acid therapeutics to treat patients with serious and life-threatening diseases. Idera’s immunotherapy approach is based on the modulation of toll-like receptors (TLRs) while its third-generation antisense technology is designed to inhibit the production of disease-associated proteins by targeting RNA.