Following the announcement of a proposed public offering, Epizyme Inc. (EPZM) stock toppled further down after-hours, on January 26.
As per the announcement, the commercial-stage biopharmaceutical company plans to offer its common stock shares in an underwritten public offering. Additionally, the company will also offer a 30-day option for buying additional 15% common stock shares, to the underwriters.
Furthermore, EPZM expects to use the net proceeds from the offering along with its current cash position for various purposes. These include worldwide tazemetostat’s development and commercialization; initiatives for speeding up TAZVERIK® adoption on commercial level; working capital; and other corporate purposes like acquisitions, licenses, debt repayment, etc.
In addition, the lead book-runner for the offering is Jefferies. And no details about the size, terms, completion of the offering were shared.
Impact on EPZM stock
While EPZM stock was already in a downtrend, the announcement escalated its downfall in the after-hours.
During the regular session, the stock suffered a loss of 5.47% at its closing price of $1.90. Consequent to the news, the stock derailed further to lose a huge 23.68% in the after-hours. Therefore, EPZM was trading at $1.45 per share in the after-hours on Wednesday.
Moreover, the 103.9 million outstanding shares of the company have declined by 24.00% year to date. Last year the EPZM stock had subtracted a value of 83.88%.
Currently, the company has a market capitalization of $208.83 million.
EPZM’s Preliminary 2021 Q4 & Full Year Results
On January 10, the company provided its preliminary expectations for the fourth quarter and full-year TAZVERIK revenue.
Q4 Expectations
The net product revenue of TAZVERIK is expected to be in the range of $11.2 million and $11.7 million in Q4 of 2021. This is expected to include about $4.1 to $4.3 million in the sale of the product for use in clinical trials by third-party.
Further, the expected commercial net sales of TAZVERIK are somewhere in the range of $7.0 million and $7.5 million for Q4 2021. Thus, marking a sequential growth of 35% over the previous quarter’s $5.2 million.
Full Year Expectations
The expected full-year 2021 net product revenue of TAZVERIK is in the range of $30.6 million and $31.1 million. This includes $7.3-$7.5 million in third-party clinical trials use-related sales.
EPZM expects commercial net sales of the product in the range of $23.2 million and $23.7 million for the full year of 2021.
