Protalix Biotherapeutics Inc. (AMEX:PLX; TASE: PLX) yesterday filed with the US Securities and Exchange Commission (SEC) a shelf prospectus to raise up to $150 million in shares.
Protalix may be trying to exploit its current share price to raise more capital ahead of obtaining US Food and Drug Administration (FDA) marketing approval for its leading product for the treatment of Gaucher's disease, due in late February, and profit taking on the share.
Protalix's share price fell 5.7% on the American Stock Exchange yesterday to $9.82, giving a market cap of $798 million, but rose 5.1% by mid-afternoon on the TASE today to NIS 35.94.
FDA approval of Protalix's Gaucher's treatment, taliglucerase alfa, will likely generate the company's first-ever revenue from US sales, changing the company from a dream to a company with actual sales. There is a downside to approval, however: the share price of companies often drops sharply as speculators who bet on the company sell their shares, which are bought by less speculative investors with longer term horizons.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2011
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