Monday, February 2, 2015
Ziopharm (ZIOP) drops over 10% in after hours trading
The company announced after hours that it plans to raise at least $75 million through a share offering. It sent shares dropping over 10% in after hours trading and I would expect the drop to continue into tomorrow's trading until the round is priced. Ziopharm announced that it required rights to a discovery platform out of MD Anderson last month by issuing over $57 million in stock (including the infamous $7.5 million "expedited signing bonus" so it could announce the partnership in time for the JP Morgan Bio conference which was one of the most interesting uses of resources I've seen in a long time. I'm currently short on Ziopharm due to its $900 million market cap with only one drug in human trials which provided unimpressive Phase 2 results in December.