AVI Biopharma shares down on stock offering

When Oregon biotech AVI BioPharma announced earlier this week a public offering of shares of its common stock, it's share price closed at $1.78. The next day its share price dropped 25 percent on the news that the developer would be selling 21 million outstanding shares at a $1.42 each--a bargain on its closing price the previous day. At the close of trading on Thursday, AVI shares were down $0.44 cents at $1.34, but rose slightly today, opening at $1.39. The company said it expects to garner $30 million from the offering, which is set to close August 25.

Just three months ago, the company's stock was trading for less than $1, but its stock price rose to a high of $2.73 over the last month as it found creative ways to raise capital. The developer had a tough Q2, reporting a hefty increase in losses--21 cents per share--and nearly 40 percent decrease in revenue compared with Q2 2008.

AVI, which is developing RNA-based drug candidates, was founded in 1980. The developer has burned through $250 million, but has yet to gain FDA approval for a drug candidate. Les Hudson joined the developer as CEO in February 2008 and is trying to change that. The CEO is leading the company's move from its headquarters in Portland to Bothell, WA in search of stronger talent. 

- here's the Buziness Journal report