Aclaris Therapeutics Inc. (NASDAQ: ACRS) debuted on the market in its initial public offering (IPO) on Wednesday morning. The offering of 5 million shares priced at $11, which was below the expected price range of $14 to $16. There is an overallotment option for an additional 750,000 shares. At this price, the entire offering is valued up to $63.25 million.

The underwriters for the offering are Jefferies, Citigroup and William Blair.

This clinical-stage specialty pharmaceutical company is focused on identifying, developing and commercializing innovative and differentiated topical drugs to address significant unmet needs in dermatology. The lead drug candidate, A-101, is a proprietary high-concentration hydrogen peroxide topical solution that the company is developing as a prescription treatment for seborrheic keratosis (SK), a common non-malignant skin tumor.

The company has completed three Phase 2 clinical trials of A-101 in over 300 patients with SK. In these trials, following one or two applications of A-101, Aclaris observed clinically relevant and statistically significant improvements in clearing SK lesions on the face, trunk and extremities of the body.

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Aclaris plans to commence three Phase 3 clinical trials of A-101 in patients with SK in the first quarter of 2016 and, if the results of these trials are favorable, to submit a New Drug Application (NDA) for A-101 for the treatment of SK to the U.S. Food and Drug Administration (FDA) in the fourth quarter of 2016.

A-101 is also intended to be used as a prescription treatment for common warts and A-102, a proprietary gel dosage form of hydrogen peroxide, as a prescription treatment for SK and common warts.

A study published in the Journal of The American Academy of Dermatology in 2006 estimated that SK affects over 83 million people in the United States. Based on a market survey Aclaris commissioned in 2014, it is estimated that there are 18.5 million patient visits to dermatologists for SK, and dermatologists perform approximately 8.3 million procedures to remove SK lesions annually in the United States. The company estimates that the cost of these procedures to third-party payors and patients is more than $1.2 billion annually.

The company intends to use the net proceeds from this offering to complete its Phase 3 clinical trials, to fund continued research on the pipeline and for general corporate purposes.

Shares of Aclaris were up fractionally at $11.05 late Wednesday morning. So far on the day shares had traded within the range of $11.00 to $11.98, and about 740,000 shares have moved on the day as of 11:30 a.m. Eastern.

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