IBRX - Why Shares of ImmunityBio Jumped This Week
2023-09-15 12:52:24 ET
Shares of ImmunityBio (NASDAQ: IBRX) were up more than 30% for the week as of 10 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence . The clinical-stage biotech 's stock closed at $1.29 last week and then rose to as high as $1.785 on Tuesday. The move came after the company announced a stock sale and refinancing worth $470 million led by the company's founder. ImmunityBio stock is still down more than 72% so far this year.
ImmunityBio focuses on cell therapies and immunotherapies. The company said on Monday that Dr. Patrick Soon-Shiong, ImmunityBio's founder, executive chairman, and chief scientific and medical officer, would contribute $200 million in financing in return for stock. In addition, the company restructured $270 million of debt with Nant Capital in return for ImmunityBio stock.
While the move certainly dilutes the value of shares, it also shows the confidence that Soon-Shiong had in the company's potential as it awaits the potential Food and Drug Administration (FDA) approval of Anktiva plus Bacillus Calmette-Guérin immunotherapy (BCG) to treat BCG-unresponsive non-muscle invasive bladder cancer. Anktiva would be the company's first FDA-approved therapy.
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Why Shares of ImmunityBio Jumped This Week