NEW YORK (AP) -- Shares of Omeros Corp. fell Wednesday after the company said it plans to sell 2.9 million shares of stock to help fund development of its most advanced experimental drugs.
Omeros said it will sell the stock for $10.25 per share. It expects to raise $30 million from the sale, or $28.1 million after discounts and expenses are deducted. The underwriters of the sale will have the option to buy an additional 439,000 shares to cover any overallotments, which could give Omeros another $4.5 million in gross proceeds.
Shares of Omeros closed at $13.25 Tuesday, and the offering is priced at a discount of 22.6 percent to that price. Omeros stock dropped $2.27, or 17.2 percent, to $10.98 in morning trading.
The Seattle company said it will use the stock sale to fund development of two products. Its drug OMS302 is intended for use in eye procedures like cataract or lens replacements. The drug is designed to help dilate pupils and reduce pain and irritation after surgery. The second product, OMS103HP, is designed to reduce pain and improve joint function after knee surgery.
Both products are in late-stage clinical development.
Omeros said it expects to complete the stock sale Monday. Cowen and Co. and Deutsche Bank are the book-running managers for the offering, and the co-managers are Canaccord Genuity and Wedbush PacGrow.