NEW YORK (TheStreet) --Horizon Pharma (HZNP - Get Report) shares are falling 2.6% to $27.75 in after-hours trading on Monday after the pharmaceutical company announced anunderwrittenpublic share offering.
The company announced that it is offering to sell 12 million shares with the underwriters of the offering expected to be granted an additional 30 days to purchase an additional 15% ofthe ordinary shares in the public offering.Citigroup (C), Jefferies, Cowen (COWN) and Morgan Stanley (MS) are acting as joint book-running managers.
On Friday Horizon announced that itsACTIMMUNE treatment fora degenerative neuro-muscular disorder known asFriedreich's ataxia (FA) received fast track designation from the FDA. Shares spiked 4% following the announcement.
"We commend the FDA for granting Fast Track designation for ACTIMMUNE in Friedreich's ataxia to potentially help treat patients suffering from this debilitating disorder, for which there are no FDA approved treatments available. We look forward to continuing our ongoing clinical development program as we evaluate ACTIMMUNE in this patient population,"said CEO Timothy P. Walbert.
TheStreet Ratings team rates HORIZON PHARMA PLC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HORIZON PHARMA PLC (HZNP) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
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Horizon Pharma (HZNP) Stock Falls in After-Hours Today Following Public Share Offering Announcement