Nuvectis Pharma Inc (NASDAQ:NVCT) experienced a sharp after-hours decline in its share price following the roll-out of an underwritten public offering of its common stock. In after-hours trade Monday, the stock fell 20.5%.
The clinical-stage biopharmaceutical company said it is initiating the offering with all shares to be sold by Nuvectis itself. As part of the financing structure, the company will grant the underwriters a 30-day option to purchase up to an additional 15% of the shares offered.
Cantor is acting as the sole book runner for the transaction. Nuvectis made clear that the offering remains subject to market and other conditions, and that there is no guarantee as to whether or when the offering will be completed, or as to the final size or terms of the deal.
Use of proceeds
According to the company, net proceeds from the offering are intended to finance continued development of its clinical-stage programs, specifically NXP100, NXP200 and NXP900, as well as any future product candidates. The funds will also be used to hire additional personnel, support capital expenditures, cover the costs associated with operating as a public company and for other general corporate purposes.
Pipeline focus
Nuvectis focuses on therapies for immune complement-related disorders and oncology. Its development portfolio includes NXP100, described as a complement Factor B inhibitor being advanced for complement-mediated diseases, and two oncology candidates, NXP900 and NXP200, targeted at advanced cancers.
The company has framed the financing as a means of accelerating these development programs and supporting organizational needs tied to being a public company.
Market reaction and next steps
The immediate market response was a notable reduction in Nuvectis shares following the financing announcement. The company reiterated that the offering is conditioned on market dynamics and other factors, leaving the ultimate outcome and terms uncertain. Cantor, as sole book runner, will manage the order book and any exercise of the 30-day option would increase the offering size by up to 15% if exercised.
Investors and market participants will be watching for updates on the offering’s progression, any filings or prospectus disclosures and whether the underwriters exercise their additional 30-day purchase option.