The share price of Israeli drug development company BioLineRX Ltd. (Nasdaq: BLRX); (TASE:BLRX) dropped 12% today, following the company's announcement of the price for its Nasdaq public offering. BioLineRX raised $25 million at a 27% discount on the market price. The drop in the company's share price pushed its market cap down to NIS 253 million ($69 million).
BioLineRX's most recent offering was in March 2015 on the same terms: a company value of $72.3 million and a 29% discount on the market price. The company's share has since lost 43% of its value.
BioLineRX's leading product is a cancer treatment originally developed by Biokine Therapeutics. BioLineRX is developing it for two indications: as a drug for treating blood cancer and as a drug for encouraging the mobility of stem cells (also for treatment of blood cancer). These products are Phase II clinical trials.
BioLineRX recently acquired Agalimmune in a deal including a $6 million advance in cash and shares, plus later royalties and payments for milestones, depending on the success of the product. These two products are immunotherapy cancer treatments.
BioLineRX also has a cooperative venture with Novartis involving three other drugs currently in preclinical development. BioLineRX's leading shareholders are Novartis and Senvest Management. Pan Atlantic Bank and Trust, formerly the largest shareholder in the company, recently ceased to be a party at interest. The CEO of BioLineRX is Philip Serlin, who replaced Dr. Kinneret Savitsky six months ago. As of December 31, 2016, the company had $36 million in cash.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 2, 2017
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