NEW YORK (GenomeWeb News) – Exact Sciences said after the close of the market Wednesday that it has launched a $125 million public offering of common stock.
The Madison, Wis.-based molecular diagnostics developer didn't say how many shares it intends to offer.
Its stock closed at $14.25 in Wednesday trade on the Nasdaq but was down around 5 percent at $13.49 Thursday morning.
In its filing with the US Securities and Exchange Commission, Exact Sciences said that it would use proceeds from the offering for general corporate and working capital purposes, including funding its efforts to obtain US Food and Drug Administration approval of its Cologuard test and subsequent commercialization activities, as well as further product development efforts.
Last week an expert panel of the FDA's Medical Devices Advisory Committee unanimously supported approval of Cologuard, a stool-based, non-invasive molecular screening test for colorectal cancer. Although advisory committee recommendations are not binding on the FDA, the agency has historically taken the advice of its expert panels.
As of the end of 2013, Exact Sciences had around $12.9 million in cash and cash equivalents.
Jefferies, Goldman Sachs, and Robert W. Baird are joint book-running managers for the proposed offering, while William Blair and Canaccord Genuity are co-managers of the offering.