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GlycoMimetics Plunges on New Stock Offering
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GlycoMimetics Plunges on New Stock Offering

The hits just kept on coming for healthcare stock GlycoMimetics (NASDAQ:GLYC). Two separate factors slammed into the stock price like a bus, sending shares down over 60% in Wednesday afternoon trading at the time of writing. A new stock offering failed to charm investors, and word of a continuation in testing didn’t help matters. First, GlycoMimetics announced that its Phase 3 study on its drug uproleselan was reviewed by the Data Monitoring Committee, an independent body. The DMC had good news, though apparently not good enough based on the share prices.

The DMC found that the study on uproleselan—which targets acute myeloid leukemia—should continue as originally planned, which could result in a “…novel treatment with significant potential to address the urgent unmet medical need in this acute leukemia.” That’s the word from the CEO of GlycoMimetics Harout Semerjian. However, the end result of this continuation is that uproleselan would take longer than expected to get to market if it gets there at all.

Second came a bigger problem, one that was likely connected to the sudden plunge. GlycoMimetics launched a share sale that saw around 11.8 million shares of stock sold as an “at-the-market” offering. That brought in an extra $32.9 million in cash, which would have a range of purposes. Meanwhile, plans for the cash include more studies and a better ability to land marketing approval.

Interestingly, insider trading at GlycoMimetics shows substantial selling activity. Currently, insider sentiment is on the high side of Neutral. Further, insiders sold off $12.2 million worth of shares in the last three months.

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