Clementia Pharmaceuticals Inc. (NASDAQ: CMTA) entered the market with a bang. The stock originally priced at $15 per share, which was at the high end of its expected price range. However, the stock actually entered the market at $18.25. There were 8.0 million shares sold in the offering, with an overallotment option for an additional 1.2 million shares. At this price, the entire offering is valued up to $138 million.
The underwriters for the offering are Morgan Stanley, Leerink Partners, Wedbush Securities and BTIG.
This clinical stage biopharmaceutical company is developing disease-modifying treatments for patients suffering from debilitating bone and other diseases with high unmet medical need. Its lead product candidate, palovarotene, is an oral small molecule that binds and activates retinoic acid receptor gamma (an RARg agonist), and it has shown potent activity in preventing abnormal new bone formation as well as scar tissue formation (or fibrosis) in a variety of tissues in animal models.
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Clementia is developing palovarotene for the treatment of fibrodysplasia ossificans progressiva (FOP) and multiple osteochondroma (MO) and has one Phase 3 trial and one Phase 2/3 trial, for two separate indications, planned to commence in 2017 with data read-outs planned in 2019 and 2020. Management believes that, if approved in FOP or MO, palovarotene could become the standard of care in either or both of these indications.
24/7 Wall St. has further detailed Clementia Pharma’s regulatory approvals and status separately.
The firm intends to use the net proceeds from the offering to fund expenses incurred in pursing the registration of palovarotene, as well as for clinical trials. The remainder will be used for working capital and general corporate purposes.
Shares of Clementia were last seen trading up 17.9% at $17.69, with a range of $17.06 to $18.95 on the day thus far. Also about 3.3 million shares had moved by the noon hour.
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