Guilford Pharmaceuticals Inc. yesterday completed a $19.5 million stock offering that sold 40 percent more shares than the company had planned, a result that analysts said reflected the strong market for biotech shares and the likelihood that the Baltimore company could gain federal approval for its first product by next year.
The company said in July it planned to sell 1.8 million shares of stock, but instead sold 3 million at $6.50 apiece after encountering much stronger-than-expected demand for shares from institutional investors. Guilford plans to plow the money into product research.
"Biotech is the best sector in the market right now," said Evan Sturza, who runs Sturza's Medical Investment Letter, based in New York. "The company is on track, they are going to get [federal product approval] relatively quickly, and not many biotech companies can say that."