Clinically diluted

Anadys Pharmaceuticals Inc. (NASDAQ:ANDS) raised $25 million in a follow-on that will fund a planned Phase IIb trial of its lead hepatitis C program, ANA598, and restart development of a second program that had been halted in June to save money.

While the company gained some runway, the dilution shaved $0.33 (15%) off the stock on Friday's news. At $1.75, it was left with a market cap of $75.6 million. The offering, underwritten by Lazard, sold 13.9 million shares at $1.80...