Biotech Values

[DewDiligence]

ICPT’s underwriter didn’t exercise the “greenshoe” option in full:

http://finance.yahoo.com/news/intercept-pharmaceuticals-announces-completion-public-201000115.html

Intercept Pharmaceuticals, Inc….today announced the completion of its previously announced underwritten public offering of 1,200,000 shares of its common stock. In addition, Intercept today announced the completion of the sale of an additional 130,865 shares of its common stock pursuant to the partial exercise of the underwriters' option to purchase additional shares.

A full exercise would have been 180K shares (an industry-standard 15% of the main offering).

My take on the partial greenshoe is that ICPT has raised so much money in the past two months (more than $550M) that investors’ appetite was exhausted.

Net proceeds from this offering (including the underwriter’s partial exercise) were $367M. The previous offering in February raised $190M in net proceeds (#msg-110567946).