Aquinox (AQXP) Pharmaceuticals Stock Rises on Baker Brothers Stake
Shares of Aquinox Pharmaceuticals Inc. (AQXP) were trading up +3.44 or +19.93 percent in this morning’s premarket after news that Baker Brothers Advisors LP had purchased an additional amount of shares of the company after an offering the company made on September 10th. Aquinox Pharmaceutical shares closed at $17.26 per share, up +0.80 or +4.86 percent in Friday’s regular trading session.
Vancouver, British Columbia based Aqunox Pharmaceuticals began operations in 2006 as a spinoff from the BC Cancer Agency, the University of British Colombia and the Vancouver Coastal Health Research Institute.
On September 9th, the company announced the pricing of an offering of 5,500,000 shares of its common stock to be sold to the public at a price of $15.50 per share. In addition to the offering, Aquinox granted the issue’s underwriters a 30-day option for the purchase of an additional 825,000 shares of common stock at the $15.50 public offering price. The offering is expected to close on September 15th, 2015.
In a filing with the Securities and Exchange Commission, dated September 12th, Aquinox disclosed that Baker Life Sciences, L.P. and 667 L.P. had purchased 2.21 million shares and 266,563 shares respectively at the company’s offering price of $15.50 per share on September 10th. The funds purchased a total of 2.48 million shares or almost half of the entire offering.
According to an amended 13D filing with the Securities and Exchange Commission, the funds run by Julian and Felix Baker have accumulated a 39.6 percent stake in the company. The ownership breakdown of the 17.05 million total shares outstanding for Aquinox disclosed to the SEC by the funds following the offering have 667, L.P. owning a 4.3 percent stake, while Baker Brothers Life Sciences, L.P. now owns 35.3 percent of the company’s outstanding stock.
Aquinox stock has been on a roller coaster since early August, when the company reported its lead product, AQX-1125 had met multiple secondary endpoints in a mid stage trial. The stock went from $1.79 per share and peaked at $55.75 per share in two days. A month earlier in July, the stock was hammered after a study showed no difference in results for the drug compared to a placebo.
Shareholders and the market have welcomed the news of the Baker brothers accumulation of Aquinox stock , sending the stock up almost 20 percent in this morning’s premarket. Nevertheless, the company is still showing a loss of -2.41 per share this year, whether the stock can continue higher or hold its gains will depend on AQX-1125 results in upcoming trials.
Other News About AQXP
Aquinox Has 33% Upside As These Four Catalysts Come Near
Canaccord Genuity analyst raises his price target for the stock from $10 to $22 per share.
Aquinox Improves Net Income with New Discoveries
R&D expenses for the company declined more than 20 percent in the second quarter reducing Aquinox’s liabilities and debt.
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