Shares of Irvine-based Tarus Pharmaceuticals Inc., maker of a medication to treat mite in eyes, fell 12% to $19.26 after it announced it would issue new stock to raise $100 million.
The offering comes after the company on July 25 said it won FDA approval for Xdemvy, the market’s only approved treatment to directly target Demodex mites, the root cause of Demodex blepharitis.
Tarsus’ shares had doubled since April in anticipation of approval of this new drug. The company now has a $516 million market cap.
Goldman Sachs & Co. LLC, BofA Securities, Guggenheim Securities, LLC and Oppenheimer & Co. are acting as joint book-running managers for the offering.