Why Cerevel Therapeutics Holdings Shares Are Nosediving

Cerevel Therapeutics Holdings Inc CERE shares are trading lower by 6.42% to $25.37 during Tuesday's session after the company reported worse-than-expected third-quarter EPS results and filed for a mixed-securities shelf offering of up to $900 million.

What Happened?

Cerevel Therapeutics reported quarterly losses of 66 cents per share which missed the analyst consensus estimate of a loss of 62 cents. This represents a 53% decrease over losses of 43 cents per share from the same period last year.

Cerevel Therapeutics says, except as described in any applicable prospectus supplement, the company intends to use the net proceeds from the sale of the securities under this prospectus for working capital and other general corporate purposes. The company has not determined the amount of net proceeds to be used specifically for such purposes.

As a result, Cerevel Therapeutics says the company's management will retain broad discretion over the allocation of net proceeds.

What Else?

"Our goal at Cerevel is to become the premier neuroscience company, and our recent financing puts us in an enviable position with the capital required to advance our diverse pipeline of novel neuroscience drug candidates," said Tony Coles, M.D., chairperson and chief executive officer of Cerevel Therapeutics.

"We have made rapid progress in advancing important programs for schizophrenia, Parkinson's disease, epilepsy, Alzheimer's disease psychosis, and other devastating neuroscience conditions as we seek to bring new treatment options to patients and their families."

According to data from Benzinga Pro, CERE has a 52-week high of $46.16 and a 52-week low of $19.86.