Melinta Therapeutics Inc. (NASDAQ:MLNT) shares plunged on Tuesday after the company announced that it had launched a public offering of its common stock to raise US$75mln.
Shares were down nearly 12% to US$6.45 in morning trade.
The New Haven, Connecticut, pharmaceutical company, which develops and commercializes novel antibiotics to treat bacterial infections, intends to use the proceeds from the sale of its shares to invest in a “portfolio of antibiotics” and expand its field sales force.
Some of the money will also be used towards boosting the firm’s supply chain and making milestone payments related to Vabomere to The Medicines Company. Vabomere is a drug containing meropenem, an antibacterial, and vaborbactam, which inhibits certain types of resistance mechanisms used by bacteria.
J.P. Morgan and Jefferies are acting as joint bookrunners for the offering, while Cantor Fitzgerald & Co. is the lead manager.
Melinta’s bestselling product is the FDA-approved antibiotic Baxdela (delafloxacin) which is used for treating acute bacterial skin infections.
-- Updates share price --