New Public Offering for Revenueless Synta Pharmaceuticals Corp. (NASDAQ:SNTA)
[[tagnumber 0]][[tagnumber 1]]Following the announcement of yet another public offering on Mar. 31, 2015, the stock of Synta Pharmaceuticals Corp. (NASDAQ:SNTA) shot up 30% and surpassed $3.00 per share by mid–April before sliding back to $2.20–$2.30 interval. Yesterday, SNTA closed trade at $2.19, down 1.35% from the preceding day, thus registering a fourth negative close in a row.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 4]]As it seems, the announcement of Synta‘s imminent presentation at the Jefferies 2015 Global Healthcare Conference scheduled to take place in early–June has failed to attract investors‘ attention just yet. Which is of course subject to change given what improvements the company will reveal come June 3. In the meantime, the stock remains in a downtrend.[[tagnumber 2]] [[tagnumber 0]]The developer of cancer treatment solutions has yet to bring any of its clinical trials to a successful close. Its main drug candidate called ganetespib (described as a hot shock protein inhibitor aimed at reducing the aggressive features of tumours) is currently engaged in a few ongoing studies, the most advanced of which seems to be the Phase 3 clinical trial in non–small cell lung cancer. Yet, there is still a way to go before concluding Phase 4, which means more revenue–less quarters on the way for SNTA.[[tagnumber 2]] [[tagnumber 0]]This explains the company‘s most recent public offering of 25.3 million shares of common stock at $1.75 per share for gross proceeds in excess of $44 million. Considering that Synta has been burning an average of $20 million per quarter for the last 15 months or so, the new injection should provide ample room for smooth operations at least for the forthcoming quarterly period.[[tagnumber 2]] [[tagnumber 0]]Since March 2014, two CEOs have resigned, which means that the company is now run by a third CEO – Mr. Chen Schor until his terms expires in two years. The forthcoming quarters will measure the efficiency of Synta‘s BoD, which will in turn give investors a clue about what the long–term value of the company really is.[[tagnumber 2]]
