Amazing Facts about CLDX's Recent Raising of Cash/Stock Dilution
We all know that Celldex raised over $100 million in cash with the sale of stock....and the share dilution did not result in a drop in the price per share....but a rise! Subsequently, the share price has grown daily for a nice overall rise in price to today's closing price of $9.36.
One of the most amazing facts about this stock offering is that Celldex diluted shares by ~ 22%, (but realized a gain in Market Cap from about $466 million to about $713 million from that dilution. That is a 53% gain in market cap from a 22% dilution!
This says a lot for the confidence in Celldex and hats off to Marucci for pulling off one of the most successful stock dilutions/cash raising efforts ever seen in a biotech stock....perfect timing and release of good news. Pretty awesome!
Good work on the math. Celldex still has at least $100 million left in the shelf registration. I hope Celldex raises even more money soon. It will extend the cash runway, put more pressure on potential partners to do very favorable deals for Celldex, and finally, Celldex can move forward on even more of their potential blockbusters.
This stock offering is different than all the previous ones. In the previous, it felt like Celldex was taking advantage of shareholders. This time it doesn't fell much like that. We know that the management at Celldex are very conservative when it comes to their finances, so we know this time, it will be different than the previous dilutions. What is different? I don't know, people are excited in exactly the same ways than the last few dilutions. Everybody is (same as before) expecting some good news. If there is no good news, there might be some selling and flattening of the prices at new low levels (higher than last time).
I think the timing for another seondary offering depends on how much the burn rate increases as a result of increased development cost as they bring the burgeouning pipeline into the later stage clinical trials. I'd like see them start to move some of the earlier develoment compounds forward and maybe even see some strategic expanded indication work materialize from the later stage drugs as well. This will take resources (people and cash). I suspect it will be at least a year before they will even consider another stock offer perhaps just before 1st commercial rollout. If we select a partner, then it could be longer before another secondary offering since they (the partner) would be bringing a significant amount of the required resources to get to market with them (or why bother to partner at all?). I think the success of current internal buildout may have some bearing on this (i.e. Is Celldex management up to the task of creating a stand-alone organization to get the pipeline through the clinic and into patients). I suspect they can with the exception of global reach in regulatory and marketing. We will know by the end of this year most likely about these important details.