http://www.fool.com/investing/general/2014/06/05/todays-top-biotech-stocks-to-watch-halozyme-therap.aspx
NVAX
".... Novavax falls hard after $100 million offering
Shares of the nanoparticle vaccinemaker Novavax fell over 11% in after hours trading yesterday following the announcement that the company was raising $100 million through an offering of its common stock. The underwriters of the offer have a 30 day option to purchase another $15 million in shares as well.
According to the press release, Novavax said it plans to use these monies for "general corporate purposes, the advancement of its clinical-stage vaccine candidates and its preclinical research programs, manufacturing and process development activities, capital expenditures and other strategic purposes."
Is it time to hit the panic button? Given that Novavax reportedly has more than $100 million still in the bank and is generating revenue through its BARDA contract, I understand why this fairly large offering is striking a sour note with investors. That being said, I think investors should focus on the phrase "other strategic purposes" as a key reason behind this offering.
Novavax is known to make strategic acquisitions that help to build out its infrastructure and technology platform. And earlier this year, management expressed interest in pursuing additional deals, even hiring Sven Andreasson specifically for this purpose. So, I think there is more than meets the eye with this offering. "