Biota Pharmaceuticals Inc (NASDAQ:BOTA) Rides On Its $26 M Public Offering Success


Dallas, Texas 01/22/2014 (FINANCIALSTRENDS) – Biota Pharmaceuticals Inc (NASDAQ:BOTA), the $187 million market capped bio tech firm announced on 14th January, the successful completion of its public offering and also indicated that the underwriters have gone ahead and exercised the over subscription option to buy out an additional 872,085 shares of common stock (set aside to account for over allotment).

On completion of this exercise this development stage Biota Pharmaceuticals Inc (NASDAQ:BOTA) has managed to raise close to $26.9 million funds which it plans to spend as working capital in furthering its new drug development activities. The option to buyout additional shares was exercised by the designated sole book running firm Guggenheim Securities, LLC. The public offering came about on the back of the 10th January prospectus being filed by the drug firm.

Biota Pharmaceuticals Inc (NASDAQ:BOTA)  was previously trading under the business name of Nabi Biopharmaceuticals. It has been concentrating its efforts on developing anti-infective drugs for ailments afflicting the human respiratory tract. The  over subscription of the recent public offering reflects the huge potential the investment community sees in the phase 2 clinical trial stage drug laninamivir octanoate that the Gorgia based drug maker is working on to make it a commercially available product. This drug is designed to treat influenza A and B infections. It is noteworthy to note here that the potential of the drug has prompted the U.S. Office of Biomedical Advanced Research and Development Authority (BARDA) to commit up to $231 million in financial assistance to the small capped drug firm to pursue the development of this specific target drug.

The public offering was priced at $4.3 per share and helped the stock of Biota Pharmaceuticals Inc (NASDAQ:BOTA) post a significant 19 percent increase in its valuation in the past one week of trading. As of 21st January close, the share price of the stock is trading at $5.49, up 5.78 percent from its previous day close.