Guardant Health slides on $650 mln stock, convertible bonds sales

Guardant Health

05/11/2025 12:19

** Shares of medical diagnostics co Guardant Health GH.O down 7.4% premarket at $90.90 after above-target capital raise

    ** Palo Alto, California-based precision oncology firm early Weds announces pricing offering of ~3.3 mln shares at $90 for $300 mln gross proceeds

    ** Offering price represents 8.3% discount to stock's last close of $98.14

    ** It also prices concurrent private offering of $350 mln 0% convertible bonds (CBs) due May 2033

      ** Initial conversion price set at $121.50, 35% above the price of the stock offering

      ** After the bell Tues, co had commenced offerings of $250 mln in stock and $300 mln CBs

      **

      GH plans to use net offering proceeds from the offerings for general purposes, including repurchasing a portion of its 0% CBs due 2027, and for potential acquisitions of complementary products, technologies

** Goldman Sachs, Jefferies, Leerink and Guggenheim are joint bookrunners for the stock offering

** Through Tues close, GH stock up 41% over the past week and has more than tripled in 2025, giving it $12.4 bln market cap

** Avg rating among 25 analysts is "buy"; median PT of $100 up from $68 a month ago, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))