SOUTH PLAINFIELD, N.J. (AP) — PTC Therapeutics Inc. raised more than $125 million after the drug developer priced an initial public offering of its stock near the top end of the range it expected.
The South Plainfield, N.J., company said it expects proceeds of about $114.2 million after deducting underwriting discounts and commissions.
The company sold nearly 8.4 million shares at $15 per share. It had expected to price the stock between $13 and $16 per share, according to Securities and Exchange Commission filings.
The banks managing the deal may buy about 1.3 million additional shares to sell if there's demand, which would increase the company's IPO proceeds.
The company plans to use offering proceeds mainly to research and develop drugs and for working capital. Its lead drug candidate is ataluren, which the company is developing as a potential treatment for patients with genetic disorders that stem from a genetic mutation known as the "nonsense mutation."
Ataluren is in late-stage clinical testing as a potential treatment for cases of Duchenne muscular dystrophy and cystic fibrosis that involve that mutation. The Food and Drug Administration has granted ataluren orphan drug status, which is awarded to drugs that treat rare conditions.
That means that if it is approved as a treatment, the FDA won't approve similar products for seven years.
PTC Therapeutics shares will start trading Thursday under the ticker symbol "PTCT."