Aptevo (APVO) Stock Plummets 79% in a Week: Here's Why

Core Viewpoint - Aptevo Therapeutics has experienced a significant stock decline of 79.0% following a secondary offering of 3.4 million shares at $1.35 per share, raising $4.6 million in gross proceeds, which is intended to support clinical development and general corporate purposes [1][2][3] Company Overview - Aptevo Therapeutics is a clinical-stage pharmaceutical company focused on developing novel therapies for cancer indications [1] - The company has two candidates in clinical development: APVO436 and ALG.APV527, targeting different oncology indications [2] Stock Performance - Following the announcement of the secondary stock offering, Aptevo's shares plummeted, with a year-to-date decline of 90.2%, compared to an 8.9% decline in the industry [2] - The stock closed at $2.40 on April 10, prior to the announcement, making the offering price a discount that did not favor investors [2] Financial Position - The secondary stock offering aims to strengthen Aptevo's financial position, as the company's preliminary cash balance was reported at $16.9 million at the end of December 2023, which is expected to deplete soon [3] - The proceeds from the offering will be used to fund current business plans and extend the cash runway [3] Clinical Development Plans - Aptevo is evaluating ALG.APV-527 in an early-stage study for multiple solid tumor types and plans to start a phase Ib/II study for APVO436 targeting acute myeloid leukemia (AML) by the end of June 2024 [3]