Shares of the biotechnology company focused on antifungal drugs, SCYNEXIS Inc. (SCYX) suffered a downfall in the after-hours as the company announced a new public offering.
Thus, on April 21, 2022, the SCYX stock went down by 19.11% in the late trading session to reach $2.54. The stock reported its new low in the after-hours against the prior $3.11 which it reached in the regular session on the same day.
Moreover, this downfall came after a slight increase of 0.32% in the earlier session which valued the stock at $3.14 apiece.
SCYX’s Public Offering
On Thursday, the company initiated an underwritten public offering of its common stock shares as well as warrants needed to purchase them. Moreover, the offering also includes pre-funded warrants for common stock for certain purchasers.
In addition, the company also plans to offer a 30-day option for purchasing an additional 15% of shares in the original offering. While all the shares in the offering are to be sold by SCYX, their size and terms were not disclosed. The terms of the offering would be disclosed in a prospectus supplement with the Securities Exchange Commission.
Furthermore, the book-running manager for the offering is Guggenheim Securities to the company.
A Market Slapped Hard by the Pandemic
The anti-fungal drugs market took a really harsh hit from the pandemic that exponentially slowed growth in the market. With all focus on developing treatments for the SARS-CoV-2 virus, even the existing treatments for fungal infections were pushed aside. Other factors that impacted the market negatively were shortages of supplies, job closures, etc.
On the other hand, many Covid-19 cases were then diagnosed to be suffering from a serious underlying fungal infection which did bring some attention to the market. Currently, the anti-fungal drug market is expected to register a CAGR of 3.5% between 2022 and 2027 as it continues to slowly recover from the outbreak of Covid-19.
While the market is still in the process of recovery as supply chain disruptions continue, it was only last year that SCYX came out with its first drug. The company achieved the landmark accomplishment of launching its first commercial product in 2021. Securing additional commercial insurance formulary coverage for the drug in Q1 2022, it is still working on building a broad antifungal franchise for it.
While SCYX stock is in the red over a new public offering, the company has yet to prove its value after it launched its first commercial drug last year, considering it fell below expectations in previous earnings.