What happened
Shares of PTC Therapeutics (NASDAQ:PTCT) fell more than 12% after the company announced the pricing of a debt offering and a share offering. The business will sell up to $287.5 million in debt notes and up to $115 million in common stock for total gross proceeds of up to $402.5 million.
The transactions will pad a balance sheet that sported $363 million in cash at the end of June. PTC Therapeutics can certainly use it. The business reported operating cash outflow of $73 million in the first six months of 2019. That's likely to increase in the near future as the company launches two new products in Latin America, prepares to submit another product to regulators for approval, and expands the use of an important drug product following a recent thumbs-up from regulators.
As of 12:22 p.m. EDT, the stock had settled to a 12.2% loss. The growth stock has gained 315% in the last three years.
Image source: Getty Images.
PTC Therapeutics has two marketed products for treating Duchenne muscular dystrophy (DMD): Translarna and Emflaza. They generated $138 million in revenue in the first six months of 2019, compared to $124 million in the year-ago period. That slow growth could accelerate soon, as Emflaza recently received approval from the U.S. Food and Drug Administration (FDA) to treat DMD patients between 2 years and 5 years of age. Those patients represent approximately 25% of all individuals with the disease.
That said, the expanded label won't immediately shore up the company's financial position. PTC Therapeutics reported an operating loss of $247 million and an operating cash outflow of $73 million in the first half of 2019. Operating expenses are expected to rise significantly in the near future to support growth efforts.
PTC Therapeutics plans to submit a new drug application (NDA) to the FDA for risdiplam as a treatment for spinal muscular atrophy (SMA) type 1, type 2, and type 3. If the drug earns marketing approval, investors can expect marketing expenses to increase during launch. Similarly, the company is about to launch Tegsedi and Waylivra in Latin America and is expanding its research efforts in gene therapy, which is an inherently expensive area of medicine.
Today's stock move is pretty straightforward: Investors are simply adjusting the company's market cap to account for dilution from the stock offering. Of course, the business had to raise outside cash to continue funding operations and expansion. It's going to take more than a few quarters for PTC Therapeutics to achieve operating profits, but the company can now focus its bandwidth on execution instead of financing.
See the original post:
Here's Why PTC Therapeutics Fell as Much as 12.5% Today - Motley Fool
- Muscular .Dystrophy -Successful-treatment by acupressure , Ayurveda, Yoga - May 10th, 2011 [May 10th, 2011]
- Muscular Dystrophy Treatment - Todd Harrison Improving Balance - May 16th, 2011 [May 16th, 2011]
- Oculopharyngeal Muscular Dystrophy (OPMD): Exploring Causes and Treatment - May 20th, 2011 [May 20th, 2011]
- Muscular Dystrophy Treatment - Todd Harrison holding body weight - May 21st, 2011 [May 21st, 2011]
- David G VECTTOR Muscular Dystrophy Treatment double arm strength month 6 - May 22nd, 2011 [May 22nd, 2011]
- David Gould Becker Muscular Dystrophy VECTTOR Treatment - June 2nd, 2011 [June 2nd, 2011]
- Muscular Dystrophy Halo - June 3rd, 2011 [June 3rd, 2011]
- Muscular Dystrophy VECTTOR Treatment Documentary - Todd's 6 Month Journey - June 7th, 2011 [June 7th, 2011]
- Muscular Dystrophy Treatment Results - David Gould - New Footage - June 8th, 2011 [June 8th, 2011]
- Muscular Dystrophy - Rewriting History with VECTTOR - June 10th, 2011 [June 10th, 2011]
- Muscular Dystrophy - David Gould 5 month VECTTOR treatment for BMD - June 12th, 2011 [June 12th, 2011]
- Duchenne's Muscular Dystrophy Stem Cell Treatment - Reelabs India - June 14th, 2011 [June 14th, 2011]
- Muscular Dystrophy VECTTOR Treatment - Todd Harrison/Luau Presentation - June 16th, 2011 [June 16th, 2011]
- Dr. William Rader - Muscular Dystrophy Breakthrough - June 16th, 2011 [June 16th, 2011]
- Muscular Dystrophy patient at Xcell-center - Nabeel Mohamed Abdulhusain, 46 years - June 17th, 2011 [June 17th, 2011]
- Charlie's Story: Duchenne Muscular Dystrophy Part 4 - July 18th, 2011 [July 18th, 2011]
- Muscular Dystrophy VECTTOR Treatment - David Gould/Luau Presentation - July 19th, 2011 [July 19th, 2011]
- Testimonial 4 of Muscular Dystrophy after Stem Cell Therapy - August 5th, 2011 [August 5th, 2011]
- Drug Combo Dynamic in Muscular Dystrophy - August 9th, 2011 [August 9th, 2011]
- Testimonial for Fetal Stem Cell Treatment of Duchenne Muscular Dystrophy - August 25th, 2011 [August 25th, 2011]
- Improvement seen in Duchenne Muscular Dystrophy after Stem Cell Therapy - September 11th, 2011 [September 11th, 2011]
- Muscular Dystrophy STS/VECTTOR treatment results - September 24th, 2011 [September 24th, 2011]
- Muscular Dystrophy VECTTOR Treatment Documentary - Todd's One Year Journey - October 2nd, 2011 [October 2nd, 2011]
- Muscular Dystrophy Treatment Day 18 - Todd Harrison's Improvement - October 2nd, 2011 [October 2nd, 2011]
- Wang Yisheng - Muscular Dystrophy Adult Stem Cell Patient - October 9th, 2011 [October 9th, 2011]
- Becker Muscular Dystrophy Miracle TREATMENT - October 11th, 2011 [October 11th, 2011]
- Muscular dystrophy patient_Kleber_Brazil.wmv - October 12th, 2011 [October 12th, 2011]
- Testimonial 1 of Muscular Dystrophy after Stem Cell Therapy - Video - October 18th, 2011 [October 18th, 2011]
- Becker Muscular Dystrophy STS Treatment - Video - October 18th, 2011 [October 18th, 2011]
- Potential Stem Cell treatment of Duchenne Muscular Dystrophy - Video - October 21st, 2011 [October 21st, 2011]
- Muscular Dystrophy treated by Dr Rajesh Shah at Life Force - Video - October 22nd, 2011 [October 22nd, 2011]
- Defying Muscular Dystrophy - I Made It - Video - October 23rd, 2011 [October 23rd, 2011]
- Becker Muscular Dystrophy AMAZING treatment results - Video - October 27th, 2011 [October 27th, 2011]
- First targeted treatment success for Duchenne muscular dystrophy - Video - November 6th, 2011 [November 6th, 2011]
- 125 Days of VECTTOR Treatment Progress - November 18th, 2011 [November 18th, 2011]
- Becker Muscular Dystrophy WALKING ABILITY IMPROVED - Video - November 25th, 2011 [November 25th, 2011]
- PT Muscular Dystrophy Treatment Results - Video - December 5th, 2011 [December 5th, 2011]
- Duchenne Muscular Dystrophy Treated by Cellmedicine - Video - January 8th, 2012 [January 8th, 2012]
- muscular DYSTROPHY treatment IN HOMEOPATH.mp4 - Video - January 28th, 2012 [January 28th, 2012]
- Giulio's strategy is to cure dystrophy with stem cell treatment - Video - January 31st, 2012 [January 31st, 2012]
- Parent Project Muscular Dystrophy is a Featured Nonprofit Selected by Webkinz(TM) Foundation - February 1st, 2012 [February 1st, 2012]
- MDA Awards More Than $12 Million in Grants to Advance Neuromuscular Disease Research - February 1st, 2012 [February 1st, 2012]
- "For treatment we will have in the future" - Video - February 2nd, 2012 [February 2nd, 2012]
- Renowned Pediatric Cardiology Physician-Scientist Linda Cripe Joins Nationwide Children's Hospital - February 3rd, 2012 [February 3rd, 2012]
- JumpStart Invests $250,000 in Milo Biotechnology - February 14th, 2012 [February 14th, 2012]
- When nerve meets muscle, biglycan seals the deal - February 14th, 2012 [February 14th, 2012]
- Medical clinics offer help for Big Island children - February 16th, 2012 [February 16th, 2012]
- Dateline Long Beach: The Aquatic Center brings swim therapy to disabled - February 19th, 2012 [February 19th, 2012]
- Parent Project Muscular Dystrophy Awards $500,000 to Tivorsan Pharmaceuticals - February 21st, 2012 [February 21st, 2012]
- Cure Duchenne Announces Three New Funded Research Projects to Help Develop Treatments and Find a Cure for Duchenne ... - February 21st, 2012 [February 21st, 2012]
- Ligand Licenses DARA Program to Retrophin - February 21st, 2012 [February 21st, 2012]
- AVI BioPharma Regains NASDAQ Compliance - February 23rd, 2012 [February 23rd, 2012]
- Scientists create potent molecules aimed at treating muscular dystrophy - February 23rd, 2012 [February 23rd, 2012]
- AVI BioPharma Announces Fourth Quarter and Full Year 2011 Financial Results and Corporate Update Conference Call - February 23rd, 2012 [February 23rd, 2012]
- Pembroke's Christine McSherry is an 'Inspirational Woman' - February 25th, 2012 [February 25th, 2012]
- The Rare Clinical Diseases Research Network - February 25th, 2012 [February 25th, 2012]
- A Solution for Duchenne Muscular Dystrophy? - Research Summary - February 28th, 2012 [February 28th, 2012]
- A Solution for Duchenne Muscular Dystrophy? -- In Depth Doctor's Interview - February 28th, 2012 [February 28th, 2012]
- Antisense oligonucleotides make sense in myotonic dystrophy - February 28th, 2012 [February 28th, 2012]
- A life of dependence - February 29th, 2012 [February 29th, 2012]
- Nationwide Children's Hospital neuromuscular disorder podcasts now available on iTunes - March 2nd, 2012 [March 2nd, 2012]
- Next-generation DNA sequencing to improve diagnosis for muscular dystrophy - March 6th, 2012 [March 6th, 2012]
- The Dire Limits of Health Care - March 7th, 2012 [March 7th, 2012]
- AVI BioPharma Announces Late-Breaker Oral Presentation of Phase IIb DMD Study at 2012 AAN Annual Meeting in April - March 12th, 2012 [March 12th, 2012]
- Cataracts affect millions of people around the globe, and for many of us they will be a normal part of our aging ... - March 14th, 2012 [March 14th, 2012]
- Your Health: Duchenne's Muscular Dystrophy - March 16th, 2012 [March 16th, 2012]
- Newborn Screening for Duchenne Muscular Dystrophy Shows Promise as an International Model - March 20th, 2012 [March 20th, 2012]
- Newborn screening for DMD shows promise as an international model - March 20th, 2012 [March 20th, 2012]
- Rhenovia launches drug discovery for Huntington's disease - March 20th, 2012 [March 20th, 2012]
- Halo Therapeutics Reports Favorable Independent Review of Lead Drug Candidate HT-100 - March 21st, 2012 [March 21st, 2012]
- Invasive treatment strategy may increase survival for patients with certain neuromuscular disorder - March 28th, 2012 [March 28th, 2012]
- Parent Project Muscular Dystrophy Endorses FAST Act Legislation to Expedite FDA Review of Life-Saving Therapies - March 29th, 2012 [March 29th, 2012]
- AVI BioPharma Announces Conference Call and Webcast on Monday, April 2, 2012, to Discuss Top-Line Data Results From ... - March 31st, 2012 [March 31st, 2012]
- Drug for rare disease may lift AVI BioPharma shares: Barron's - April 2nd, 2012 [April 2nd, 2012]
- AVI BioPharma Announces Eteplirsen Meets Primary Endpoint, Demonstrating a Significant Increase in Dystrophin at 24 ... - April 2nd, 2012 [April 2nd, 2012]
- U.S. Stock Futures Little Changed Before Factory Report - April 2nd, 2012 [April 2nd, 2012]
- Leading experts on congenital muscular dystrophy convene at University of Nevada, Reno - April 20th, 2012 [April 20th, 2012]
- Nature Publishes Work Utilizing N-Gene's Core Technology to Advance the Treatment of Duchenne Muscular Dystrophy - April 20th, 2012 [April 20th, 2012]
- Getting the boots filled - April 29th, 2012 [April 29th, 2012]
- Local business, civic leaders 'arrested' for MDA fundraiser - May 3rd, 2012 [May 3rd, 2012]