Orlando, FL 3/16/12 (StreetBeat) -- Discovery Laboratories Inc. (Nasdaq: DSCO) said Friday it expects net proceeds of $42.1 million from a public stock offering it announced Thursday.The Warrington, Pa., biopharmaceutical company priced the 16.1 million shares of common stock its is selling at $2.80 per share, which would generate gross proceeds of $45 million.
The news of the dilution of the company’s stock and its pricing sent Discovery’s (NASDAQ: DSCO) shares down nearly 20 percent to $2.82 per share from $3.50 in pre-market trading.
The funds from the offering will be used for the launch of Discovery’s first two products.Surfaxin was approved last week to prevent respiratory distress syndrome in premature infants. Afectair was approved last month to simplify delivery of aerosolized medications to patients requiring ventilator support.
The offering is expected to close on or about March 21, subject to satisfaction of customary closing conditions. The company said the underwriters have been granted a 30-day option to purchase up to an additional 2.4 million shares of common stock to cover over-allotments, if any.
Lazard Capital Markets is acting as the sole book-running manager for the offering, Stifel Nicolaus Weisel is acting as co-lead manager, and Roth Capital Partners is acting as co-manager.
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