Shares of Provention Bio Inc. surged 4.5% in premarket trade Thursday, after the biopharmaceutical company said it has terminated its planned public stock offering, citing current market conditions. The stock had more than tripled (up 217%) on Monday, after the company reported positive results from a study of its diabetes treatment. The stock then fell 13% on Tuesday, and 1.7% on Wednesday, after Provention looked to take advantage of the rally by proposing a public offering of 5.5 million common shares, which represented about 14.7% of the shares outstanding. On Thursday, the company said it decided not to sell shares after determining that “current market conditions are not conducive for an offering on terms that would be in the best interests of the company’s shareholders.” The stock has run up nearly 7-fold (up 569.5%) year to date through Wednesday, while the iShares Nasdaq Biotechnology ETF has gained 7.2% and the S&P 500 has advanced 14.9%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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