Healthcare stock under pressure: PTC Therapeutics, Inc. (NASDAQ: PTCT)

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PTC Therapeutics, Inc. (NASDAQ: PTCT) stock fell 11.29% on September 19th, 2019 (Source: Google finance) but recovered slightly on September 19th, 2019 (as of 11:40 am GMT-4; Source: Google finance). The company announced the pricing of a public offering of 2,475,248 shares of its common stock at an offer price of $40.40 per share. This is before the underwriting discounts and commissions. The company has also granted the underwriter with an option for a period of 30 days for purchasing up to an additional 371,287 shares of common shares at the offer price, less the underwriting discount. Credit Suisse is acting as the sole bookrunning manager for this public offering of common shares.  PTC intends to close this public offer on or about September 20, 2019, which will after the satisfaction of customary closing conditions.

Moreover, the company has also priced its private offering of $250 million total principal amount of its convertible senior notes which will mature on September 15, 2026. The company has granted to the initial purchaser a 30-day option for purchasing up to an additional $37.5 million total principal amount of the Notes. The Notes will carry an interest at a rate of 1.50% per year, which will be payable semi-annually. The Notes will be convertible before March 15, 2026, only on the occurrence of certain circumstances. It  will get converted on or after such date regardless of these circumstances, into cash, shares of PTC’s common share or any combination thereof at PTC’s election. The conversion rate for the Notes is initially be 19.0404 shares of common share per $1,000 principal amount. This is equivalent to an initial conversion price of about $52.52 per share of common share. The initial conversion price of the Notes will be at a premium of approximately 30% more than the public offering price of the previously announced concurrent public offering of common stock by PTC. The sale of the Notes is projected to close on September 20, 2019

On the other hand, PTCT has reported the net loss of $41.8 million for the second quarter of 2019, compared to net loss of $9.5 million for the second quarter of 2018. The company’s cash, cash equivalents, and marketable securities were $363.5 million at June 30, 2019, compared to $227.6 million at December 31, 2018.

For FY 19, PTCT expects full year DMD franchise net product revenues to be between $285 and $305 million and non-GAAP R&D and SG&A expense for the full year 2019 to be between $360 and $370 million.

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