Egalet's Stock Plunges Toward Record Low After Stock Offering Plan

Shares of Egalet Corp. plunged 27% toward a record low in premarket trade Thursday, after the developer of pain treatment drugs announced a public offering of common stock. The company said late Wednesday the size of the offering was subject to market conditions. The company had 25.6 million shares outstanding as of May 10. Egalet said it plans to use the proceeds of the offering to support commercial sales and marketing with respect to Arymo ER (morphine sulfate) extended-release tablets for oral use, Sprix (ketorolac tromethamine) nasal spray and Oxaydo (oxycodone HCI) tables and for general corporate purposes. The stock was trading at $1.85, below the previous record close of $2.14 on June 1. The stock has plummeted 67% year to date through Wednesday, while the SPDR S&P Pharmaceuticals ETF has climbed 11% and the S&P 500 has gained 8.7%.