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Aptevo (APVO) Stock Plummets 79% in a Week: Here's Why
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Aptevo Therapeutics (APVO - Free Report) is a clinical-stage pharmaceutical company focused on developing novel therapies targeting cancer indications.
In the past week, the company’s stock lost 79.0%. This downside came after management came out with a secondary issue of 3.4 million shares of its common stock to the public at an issue price of $1.35 per share, amounting to $4.6 million in gross proceeds. The issue was closed on Apr 15.
Per the public offer’s terms, each common stock will be accompanied by two warrants. Each warrant will have an exercise price of $1.35 per share and will be exercisable immediately upon issuance and valid for five years from the issuance date.
Aptevo plans to use the net proceeds from this new issue and its existing cash balance to support the clinical development of its pipeline candidates. Management will also use the proceeds for its general corporate purpose, including working capital requirements.
Shares of Aptevo plummeted immediately following the announcement of pricing for this issue. The downtick was likely caused by the issuance of a large number of shares, diluting the company’s current shareholder base. As of Apr 11, the company’s outstanding shares count stood at around 0.68 million. Considering the size of the secondary issue, the current shareholder base significantly diluted the existing shareholder base. The issue price per share also did not go well with investors, which was at a discount to the closing price on Apr 10 (the day prior to the press release announcing the secondary issue), with the stock closing at $2.40.
Year to date, Aptevo’s shareshave plunged 90.2% compared with the industry’s 8.9% fall.
Image Source: Zacks Investment Research
Aptevo Therapeutics currently has two candidates in clinical development, namely APVO436 and ALG.APV-527, both of which are being evaluated in separate clinical studies targeting different oncology indications.
The company is currently evaluating ALG.APV-527 in an early-stage study for the treatment of multiple solid tumor types. Management plans to start a phase Ib/II study evaluating APVO436 for the treatment of acute myeloid leukemia (AML) by June 2024-end.
This secondary stock offering is intended to strengthen Aptevo’s financial position. As of 2023-end, management stated that its preliminary cash balance, which stood at $16.9 million as of the end of December 2023, would dry out soon. This new cash inflow will enable management to fund its current business plans and extend the existing cash runway.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have risen from 22 cents to 30 cents. During the same period, EPS estimates for 2025 have improved from 32 cents to 50 cents. Year to date, shares of ADMA have surged 32.3%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 85.00%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have risen from $4.06 to $4.43. Meanwhile, during the same period, EPS estimates for 2025 have improved from $4.80 to $5.04. Year to date, shares of ANIP have risen 20.2%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters. ANI delivered a four-quarter average earnings surprise of 109.06%.
In the past 60 days, Ligand Pharmaceuticals’ earnings estimates per share for 2024 have increased from $4.42 to $4.56. During the same period, earnings estimates for 2025 have risen from $5.11 to $5.27. Year to date, shares of Ligand Pharmaceuticals have gained 11.7%.
Ligand Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters. On average, LGND’s four-quarter earnings surprise was 84.81%.
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Aptevo (APVO) Stock Plummets 79% in a Week: Here's Why
Aptevo Therapeutics (APVO - Free Report) is a clinical-stage pharmaceutical company focused on developing novel therapies targeting cancer indications.
In the past week, the company’s stock lost 79.0%. This downside came after management came out with a secondary issue of 3.4 million shares of its common stock to the public at an issue price of $1.35 per share, amounting to $4.6 million in gross proceeds. The issue was closed on Apr 15.
Per the public offer’s terms, each common stock will be accompanied by two warrants. Each warrant will have an exercise price of $1.35 per share and will be exercisable immediately upon issuance and valid for five years from the issuance date.
Aptevo plans to use the net proceeds from this new issue and its existing cash balance to support the clinical development of its pipeline candidates. Management will also use the proceeds for its general corporate purpose, including working capital requirements.
Shares of Aptevo plummeted immediately following the announcement of pricing for this issue. The downtick was likely caused by the issuance of a large number of shares, diluting the company’s current shareholder base. As of Apr 11, the company’s outstanding shares count stood at around 0.68 million. Considering the size of the secondary issue, the current shareholder base significantly diluted the existing shareholder base. The issue price per share also did not go well with investors, which was at a discount to the closing price on Apr 10 (the day prior to the press release announcing the secondary issue), with the stock closing at $2.40.
Year to date, Aptevo’s shareshave plunged 90.2% compared with the industry’s 8.9% fall.
Image Source: Zacks Investment Research
Aptevo Therapeutics currently has two candidates in clinical development, namely APVO436 and ALG.APV-527, both of which are being evaluated in separate clinical studies targeting different oncology indications.
The company is currently evaluating ALG.APV-527 in an early-stage study for the treatment of multiple solid tumor types. Management plans to start a phase Ib/II study evaluating APVO436 for the treatment of acute myeloid leukemia (AML) by June 2024-end.
This secondary stock offering is intended to strengthen Aptevo’s financial position. As of 2023-end, management stated that its preliminary cash balance, which stood at $16.9 million as of the end of December 2023, would dry out soon. This new cash inflow will enable management to fund its current business plans and extend the existing cash runway.
Aptevo Therapeutics Inc. Price
Aptevo Therapeutics Inc. price | Aptevo Therapeutics Inc. Quote
Zacks Rank & Other Key Picks
Aptevo currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the overall healthcare sector include ADMA Biologics (ADMA - Free Report) , ANI Pharmaceuticals (ANIP - Free Report) and Ligand Pharmaceuticals (LGND - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have risen from 22 cents to 30 cents. During the same period, EPS estimates for 2025 have improved from 32 cents to 50 cents. Year to date, shares of ADMA have surged 32.3%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 85.00%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have risen from $4.06 to $4.43. Meanwhile, during the same period, EPS estimates for 2025 have improved from $4.80 to $5.04. Year to date, shares of ANIP have risen 20.2%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters. ANI delivered a four-quarter average earnings surprise of 109.06%.
In the past 60 days, Ligand Pharmaceuticals’ earnings estimates per share for 2024 have increased from $4.42 to $4.56. During the same period, earnings estimates for 2025 have risen from $5.11 to $5.27. Year to date, shares of Ligand Pharmaceuticals have gained 11.7%.
Ligand Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters. On average, LGND’s four-quarter earnings surprise was 84.81%.