Aligos Therapeutics, Inc. (ALGS) stock prices were down by a hefty 17.19% shortly after market trading commenced on July 1st, 2021, bringing the price per share down to USD$16.88 early on in the trading day.
Public Offering
June 30th, 2021 saw the company announce the pricing of its previously announced underwritten public offering, wherein ALGS will put up 4.4 million shares of its common stock for sale. As per the announcement, the public offering price will be USD$19.00 per share of common stock. Underwriters have also been granted a 30-day option to purchase up to an additional 660,000 shares of common stock in the case of over allotments.
Details of the Offering
The public offering is expected to generate gross proceeds in the amount of roughly USD$83.6 million before the deduction of any expenses related to the offering. This total also does not include capital generated from the exercising of the underwriters’ option to purchase addition shares. The offering is expected to close on July 6th, 2021, pending the satisfaction of customary closing conditions.
Net Loss Reports
Net loss for the quarter ended March 21st, 2021 was reported at USD$27.7 million, representing a net loss of USD$0.74 per basic and diluted common share. This is up from the USD$20 million reported for the same quarter of the prior year, representing a net loss of USD$7.56 per basic and diluted common share. The company reported cash, cash equivalents, and marketable securities in the amount of USD$213.4 million for the quarter, as compared to the USD$243.5 million reported as of December 31st2020.
R&D Expenses
Research and development costs were up to USD$22.9 million for the quarter ended March 31st, 2021, an increase from the USD$17.3 million reported for the prior-year quarter. This difference was largely driven by expenses related to the company’s ongoing development of ALG-010133 and ALG-000184 clinical trial activities. Further contributing to the year-over-year difference were increases in salaries and employee-related expenses and preclinical programs. The company reported USD$1.7 million in total R&D stock-based compensation expense for the 2021 quarter, as compared to the USD$0.2 million reported in the prior-year quarter.
Future Outlook for ALGS
Armed with a solid liquidity position that is to be further consolidated with the closing of its public offering, ALGS is poised to capitalize on the expanded opportunities in front of it. Investors are hopeful that management will continue to leverage the resource at their disposal to facilitate significant and sustained increases in shareholder value.
