On Wednesday, Avidity Biosciences  (NASDAQ: RNA) revealed promising results for its treatment for a rare type of muscular dystrophy. This news caused RNA stock to shoot up 32.5% to $38.36, moving as high as $39.25. The top-rated biotech company also announced a public offering of its common stock. All stock will be sold by the company, which intends to use the proceeds to help fund the development of its clinical programs, to advance R&D, and for general corporate use and working capital.

On Thursday, the company announced that 10,550,000 shares would be publicly offered for $38.00 per share. Avidity expects to raise $400.9 million in gross proceeds before underwriting commissions and discounts. This offering is expected to close around June 17. The company will also grant underwriters a 30-day option to buy up to 1,582,500 additional shares.

Who Is Avidity? 

Avidity Biosciences is a biopharmaceutical company that focuses on developing a new class of RNA therapeutics for treating various conditions. They are working on a medicine called del-brax to treat a rare muscle disease called facioscapulohumeral muscular dystrophy (FSHD). This disease causes pain, muscle weakness, and fatigue due to problems with a gene called DUX4.

In a recent study, patients who received del-brax treatment had more than a 50% average reduction in the DUX4 genes, and all subjects showed more than a 20% reduction, better than expectations. Experts applaud Avidity’s approach to developing medicines that act on specific cells and they believe this could lead to other targeted disease treatments.

What The Analysts Are Saying

Over the past year, RNA shares were in the top 1% of performance for all stocks. Wall Street analyst firms, which include Raymond James, TD Cowen, and Wells Fargo Securities, are bullish on this news and the company. The consensus rating for RNA is a Strong Buy, with an average 12-month price target of $52.00 and a high estimate of $75. Other research firms with buy ratings include Bank of America, Needham & Company LLC, and Chardan Capital. Evercore ISI gave RNA an “outperform” rating, while Cantor Fitzgerald started covering the stock, setting an “overweight” rating and $60 price outlook.

Neither Julie Stoller nor Stocks.News have positions in this company.