Translate Bio TBIO shares were trading lower Thursday after the company announced a $125-million proposed common stock offering.
More On Translate Bio's Offering: Additionally, Shire, a subsidiary of Takeda Pharmaceutical Co Ltd TAK, is offering 6,824,992 shares of Translate Bio’s common stock in the offering, according to a press release issued after the close Wednesday.
Translate Bio will not receive any proceeds from the sale of the shares by Shire.
Translate Bio said it intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the base shares of common stock being offered.
Why Translate Bio Rallied Tuesday: On Tuesday, shares of the small-cap mRNA therapeutics company spiked higher after Translate Bio and Sanofi SA SNY announced an expansion of their 2018 collaboration and licensing agreement to develop mRNA vaccines for infectious diseases.
The agreement provides for Translate Bio receiving a total upfront payment of $425 million, and potential future milestones and other payments up to $1.9 billion as well as tiered royalty payments based upon worldwide sales. The upfront payment includes $300 million in cash and a private placement of $125 million in stock at $25.59 per share.
TBIO Price Action: Translate Bio shares were down 4.79% at $25.38 at the time of publication. The stock has a 52-week high of $28.09 and a 52-week low of $6.80.
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