Fremont, Calif.-based Zosano Pharma Corporation (NASDAQ:ZSAN), a clinical-stage biopharmaceutical company, saw its shares drop Tuesday, on the commencement of an underwritten public offering of shares of its common stock. All of the shares to be sold in the offering will be offered by Zosano.
In addition, according to Monday’s news release heralding the offering, came word that Zosano intends to grant to the underwriter a 30-day option to purchase up to an additional 15% of the shares of its common stock offered in the public offering, on the same terms and conditions.
The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.
Zosano intends to use the net proceeds from the offering to fund its ongoing development and preparation for potential commercialization of Qtrypta™ (M207), and for working capital and general corporate purposes.
Zosano focuses on providing administration of therapeutics to patients using its intracutaneous delivery system, which consists of titanium microneedles coated with drug that can enable rapid systemic administration to patients. Qtrypta is the company’s lead product candidate, and is Zosano’s proprietary formulation of zolmitriptan delivered via its intracutaneous delivery technology for the treatment of migraine disease.
Shares plummeted $1.20, or 24%, to $3.81
