Why Are These Stocks Losing Ground Today?

Epizyme Inc (NASDAQ:EPZM) fell by another 15% today as selling on the back of the company’s Tuesday aftermarket announcement of a proposed public offering of common stock to raise $120 million continues. Because $120 million represents a big chunk of Epizyme Inc (NASDAQ:EPZM)’s under $500 million market cap, the company was only able to sell its stock for $9 per share before underwriting discounts. Epizyme plans to use the raised funds to finance the global development costs of tazemetostat, the company’s novel oral EZH2 inhibitor, outside of Japan, and other activities.

The correlation between Alibaba Group Holding Ltd (NYSE:BABA) and the Shanghai index continues, as Alibaba shares are down by 4.6% due to the Shanghai index’s 7% fall last night. If the price action of the Shanghai market is a leading indicator of the Chinese economy, China’s economy might not be out of the woods just yet and Alibaba Group Holding Ltd (NYSE:BABA) earnings could slow more than expectations. According to our data, hedge funds were underweight on Alibaba in the third quarter. A total of 60 funds reported stakes worth $3.79 billion (representing 2.60% of the float) at the end of September, versus 85 funds and $4.77 billion at the end of June.

Not to be left out, Galena Biopharma Inc (NASDAQ:GALE) shares are off by 27.5% after the company announced it, ‘intends to offer shares of its common stock and warrants to purchase its common stock in an underwritten public offering’ to finance its Phase 3 PRESENT study and other clinical trials of its product candidates. The company also plans to use the money for general corporate purposes. Four funds from our database held 1.1% of Galena Biopharma Inc (NASDAQ:GALE)’s float at the end of the third quarter.

Disclosure: none