Proteostasis Therapeutics Inc (NASDAQ: PTI) has been a roller coaster ride to watch as of late. Last week, the company announced that the United States Food and Drug Administration has granted Breakthrough Therapy Designation to PTI-428, the company’s cystic fibrosis treatment. Of course, this sent the stock flying! This was quickly followed up by a strong earnings release. As a result, the stock went on a dramatic run toward the top last week.
However, this week hasn’t been so great. In fact, PTI fell by 26.18% in the market yesterday after a short report was released by Kerrisdale Capital. In the report, Kerrisdale said that while the stock ran for the top on breakthrough therapy designation, the designation means nothing because the clinical data show that the treatment doesn’t work, leading to fears in the minds of investors.
Nonetheless, PTI is making its way back toward the top today on news that the company has cancelled an upcoming public offering. Today, we’ll talk about the cancellation of the offering, what we’re seeing from the stock, and what we’ll be watching for ahead.
PTI Cancels Offering
As mentioned above, Proteostasis Therapeutics is having a pretty strong start to the trading session this morning after cancelling a public offering. In a press release, the company announced that it will not be proceeding with its proposed public offering of 9 million shares of common stock. The offering was announced on March 19th. In the release, PTI said that it has withdrawn the offer because it believes that market conditions are not currently conducive for an offering on the terms that would be in the best interest of current shareholders.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. Due to several points of both positive and negative news as of late, Proteostasis has become a roller coaster ride. Nonetheless, the fact that the company has withdrawn plans to dilute shares with the offering of 9 million shares is great news. So, it’s no surprise to see that investors are excited and sending the stock upward in the pre-market. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:03), PTI is trading at $5.70 per share after a gain of $0.54 per share or 10.47% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PTI. In particular, we’re interested in following the company’s work surrounding PTI-428 to see if Kerrisdale is onto something here or if they’ve simply created a discount. Nonetheless, we’ll continue following the story closely and bringing the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!