Provention Bio Prices Public Offering at $16 Per Share; Shares Drop 14%


Provention Bio, Inc. declared that the previously announced public offering of 6.25 million shares will be priced at $16 per share. Shares of the biopharmaceutical company dropped 14% yesterday to close at $16.66.

Gross proceeds from the offering are expected to be $100 million and the underwriters of the offering have been offered a 30-day call option on an additional 937,500 shares. The offering is expected to close around January 19, 2021.

Provention Bio (PRVB) focuses on developing therapies that may intercept and prevent debilitating and life-threatening immune-mediated diseases, including celiac and lupus.

Proceeds from the public offering will be used for general corporate purposes and the development therapies. Additionally, they will contribute to potential acquisitions and licensing agreements, royalty payments, regulatory, manufacturing and other commercial activities. (See PRVB stock analysis on TipRanks)

H.C. Wainwright analyst Ram Selvaraju reiterated his Buy rating on PRVB nine days ago and set his price target to $26. This implies upside potential of around 56% from current levels.

On an earnings call last year, the analyst asked Jason Hoitt, Chief Commercial Officer of Provention Bio, about the pricing of the drug teplizumab, a treatment for type 1 diabetes. Hoitt responded that he expected the pricing of the treatment to be discussed in the early part of 2021, once the data from real-world studies has been analyzed.

Consensus among analysts is a Strong Buy based on 4 Buy recommendations. The average price target of $28.75 suggests upside potential of around 72% over the next 12 months.

TipRanks’ Smart Score on PRVB is a 5, which implies that the stock is most likely to perform in line with market averages.

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