Stoke Therapeutics Inc.'s stock is on the rise in after-hours trading following the announcement of a proposed underwritten public offering worth up to $75 million. The company also stated that it plans to give underwriters a 30-day option to purchase an additional 15% of the shares offered. The net proceeds from the offering are earmarked for funding research, clinical and process development, and manufacturing activities related to its product candidates, including advancing the late-stage development of STK-001 and further work on STK-002.
The surge in Stoke Therapeutics' stock price comes after a significant increase of over 58% during the regular trading session on Tuesday. This boost was linked to new Phase 1/2a data that supported the potential effectiveness of STK-001 in treating Dravet syndrome. The company revealed positive results from its STK-001 studies, indicating notable reductions in convulsive seizure frequency and enhancements in various cognitive measures. Stoke Therapeutics' CEO, Edward Kaye, highlighted that these findings suggest STK-001 could potentially act as a disease-modifying medication for patients with Dravet syndrome by addressing the root cause of the disease rather than just managing the symptoms.
Despite the positive developments, Stoke Therapeutics has an average trading volume of around 279,000 shares. However, the trading volume exceeded 19 million shares at the time of publication, indicating heightened investor interest. In terms of price action, the company's stock closed up over 58% at $10.29 on Tuesday, and in after-hours trading, it was up by 3.69% at $10.67.