Capricor Therapeutics Stock Slides After Pricing Secondary Offering, Catches Retail’s Eye

Shares of Capricor Therapeutics, Inc. ($CAPR) fell nearly 10% pre-market Thursday after the company announced the pricing of its underwritten public offering.

The biotech company priced its secondary offering of 4,412,000 shares at $17.00 per share — over 15% below Wednesday’s close.

The offering is expected to raise about $75M in gross proceeds before deducting fees and expenses.

Piper Sandler & Co. and Oppenheimer & Co. are managing the offering, with Capricor planning to use the funds for product development, manufacturing, and general corporate purposes.

Capricor was among the top five trending tickers on Stocktwits Thursday morning, with retail sentiment remaining ‘bullish’ before the market opened.

One user pointed to the company’s low burn rate and growth potential, suggesting the funds will likely be used to expand its lead drug candidate, deramiocel, or explore new opportunities with exosomes.

Another noted that the cash raised could enable Capricor to begin clinical trials for new indications like Becker’s muscular dystrophy or Myotonic Dystrophy.

Shares of Capricor have surged over 345% in the past month alone, driven by excitement around deramiocel’s potential to treat Duchenne muscular dystrophy cardiomyopathy.

Last week, Capricor began the rolling submission of its Biologics License Application (BLA) for deramiocel with the FDA, aiming for full approval by the end of the year.

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