Why Lexicon Pharmaceuticals Flopped on Friday

Lexicon Pharmaceuticals (NASDAQ: LXRX) ended Friday 6% lower than the previous close. A fall seemed inevitable, as the company announced a rather dilutive new secondary common stock issue at a level below the shares' Thursday closing price.

Lexicon, a biotech focused on developing drugs underpinned by extensive gene research, said it will float just over 20.3 million new shares in a registered direct offering to three privately held entities. The price is $3.20 apiece. All told, if successful the gross proceeds of the issue will be $65 million.

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Source Fool.com