Dec 172012

At-the-market (ATM) offerings continue to show strong growth in the life sciences industry, with 29 agreements signed in 2012, compared to 18 agreements in 2011. Not only is it clear that companies are recognizing the benefits of accessing capital at a lower cost through the use of ATMs, there is also data that supports stock price change is less severe following ATM offering deal announcements compared to traditional follow-on deals.  On average, stock prices fall nearly 10% after ten days following traditional deal announcements, compared to 2.25% with ATM offerings. For an issuer with a market capitalization of $300 million, the price difference accounts for $21 million of additional dilution.

Data contains:

•    Deal timeframe: 1/1/2012 – 12/14/2012
•    Filter by issuer market cap: $30 million – $7 billion

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