TrovaGene Falls Sharply; Prices Offering Below Expectations

TrovaGene Inc TROV fell sharply after the pricing on its public offering of 4.4 million shares disappointed investors.

TrovaGene said Friday it expects gross proceeds of $20 million, or about $4.50 a share, from the offering. The company's shares plunged more than 20 percent recently to $4.68.

Net proceeds from the offering will fund research and development as well as working capital and other corporate purposes, the San Diego-based company said.

TrovaGene, which is developing a product to diagnose and monitor cancer, currently has about 19 million shares outstanding and granted underwriters a 30-day option to purchase up to an additional 666,666 shares.

The company expects it will need to raise additional capital in the next 12 to 18 months to complete the development and commercialization of current product candidates.

Piper Jaffray is acting as sole book-running manager and Janney Montgomery Scott LLC, Maxim Group LLC and Cantor Fitzgerald & Co. are acting as co-managers for the offering.