Back to top

Analyst Blog

Zacks Equity Research

Fibrocell Prices Offering at Discount, Shares Plunge

ALIOF AFFX FCSC

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Shares of Fibrocell Science, Inc. (FCSC - Snapshot Report) plunged 15.83% on Sep 26, 2013, after it announced the pricing of an underwritten public offering of 11,000,000 shares of its common stock at $4.10 per share.

The offer price of $4.10 per share was at a 17.8% discount to the closing price of $4.99 per share on Sep 25, 2013.

The offering is expected to close by Oct 1 and generate gross proceeds of $45.1 million.

Fibrocell will grant the underwriters a 30-day option to purchase up to an additional 1,650,000 shares to cover over allotments, if any.

Fibrocell intends to use the net proceeds from the stock offering to fund its phase III studies for additional indications for its currently marketed product, LAVIV.

We note that LAVIV, an autologous cellular product, is approved for use in adults for improvement of the appearance of moderate-to-severe nasolabial fold wrinkles.

The company is looking to expand the LAVIV label and assess the product for several indications including the treatment of restrictive burn scars (RBS). In May 2013, the company announced the initiation of a phase II study evaluating LAVIV for the treatment of RBS.

Fibrocell also plans to progress its collaboration programs with Intrexon Corporation (XON) and use the funds for working capital and general corporate and administrative expenses.

We note that Fibrocell is collaborating with Intrexon Corporation for the discovery and development of treatments for rare collagen deficient conditions such as recessive dystrophic epidermolysis bullosa and also autoimmune and inflammatory disorders such as morphea (localized scleroderma), cutaneous eosinophilias and moderate to severe psoriasis.

Fibrocell Science currently carries a Zacks Rank #3 (Hold). Right now, companies that look attractive include Actelion Ltd. (ALIOF) and Affymetrix Inc. (AFFX - Analyst Report). Both carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%