Shares of clinical-stage biopharmaceutical company Humanigen (NASDAQ: HGEN) were falling sharply on Wednesday following the company’s announcement of the pricing of a public offering of common stock. Naturally, investors aren’t thrilled with the prospect of Humanigen diluting its shareholders. As of 2:06 p.m. EDT, the company’s stock was off by 15.3%, after having been down by as much as 16.9% earlier in the session.
The timing of Humanigen’s public offering of common stock probably isn’t random. On Monday, its stock price skyrocketed by more than 50% after it announced positive news regarding one of its pipeline candidates, lenzilumab. The hopeful COVID-19 treatment proved both safe and effective in a phase 3 clinical trial when taken in combination with other treatments and steroids. Specifically, patients treated with lenzilumab and other medicines were 54% more likely to survive without the assistance of a mechanical ventilator than those treated with a placebo and other drugs.