Keryx Biopharmaceuticals (NASDAQ:KERX) Future Lies In Zerenex
After rocking and rolling for the most part of the day, the stock prices of Keryx Bio-pharmaceuticals (NASDAQ:KERX), finally settled at $15.45, posting a gain of 85 cents, which is 5.82%. The volatility crept in after the company announced its $90 million stock offering.
A Wind Of Confusion
Before the company’s $90 million stock offering, it was strongly believed that it will find a partner, up ahead of its impending FDA approval for the drug Zerenex, which is meant for chronic kidney disease. However, the company’s statements pertaining to the utilization of the net proceed of the offering has brushed off the beliefs of the investors. Now, as per the plan, the company will utilize the net proceeds of the offering for the launch as well as pre-commercial and commercial activities in connection with Zerenex. This all leads to the conclusion that for the immediate point of time, Keryxdo has no prospective partners.
For the time being it could all be interpreted as the success of Zerenex is not sure shot, therefore, the potential buyers are also wary to take in position. While, Keryx is creating a strong bargaining position, however; any affirmative results from the FDA can change the course of events.
More About the Company
Keryx, is a bio-pharma firm, which engages in the development, acquisition and marketing of the pharmaceutical drugs. The company specializes in the area of renel disease and cancer. The latest in the pipeline is Zerenex, which is set to get FDA’s decision towards the end of the year. In view of which, the company has come forth with the initiation of its $90 million public offering on Wednesday, the proceeds of which are largely meant to be utilized in relation to Zerenex. The underwriters are given a 30 day window for additional shares purchase and J.P. Morgan will be the book-running manager for the offering.