The company raised $25 million in its IPO just five months ago.
Quite a few Israeli pharmaceutical companies have probably asked themselves in the past few months, “If Alcobra Ltd. (Nasdaq: ADHD), a Phase II clinical trial company, can raise $25 million on Wall Street, we can do it too.” It seems that Alcobra told itself the same thing, and in view of the open window for offerings in New York, it is now seeking to hold a secondary offering, after publishing a prospectus on Tuesday to raise $30 million.
he company will grant the underwriters an option to buy additional shares amounting to 15% of the offering.Alcobra is developing a treatment for attention deficit hyperactivity disorder (ADHD), and it has completed a Phase IIb clinical trial of its product. The company wants to use the proceeds from the secondary offering for a study of its drug on children with ADHD (the study is currently for adults), and to extend its indication to Fragile X, which is linked to autism.
The fact that Alcobra is already holding a secondary offering is surprising, given that it raised $25 million in its IPO just five months ago. However, it is clear that the company wants to strike while the iron is hot, and in its case, burning hot. The share has had a phenomenal 151% yield, making it the best performing Israeli offering on Wall Street this year.
Alcobra’s share opened at $20.05 today, giving a market cap of $223 million, after rising 7% on Tuesday on reports of the planned offering. The share price rose 2.3% at the opening on Nasdaq today.
The underwriters for the offering are Aegis and Steifel.
Published by www.globes-online.com