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ARTICLE | Financial News

June 28 Financial Quick Takes: Karuna rises after IPO; plus Chi-Med, BeiGene and more

June 28, 2019 11:41 PM UTC

Karuna spikes in first-day trading on NASDAQ
PureTech Health plc (LSE:PRTC) portfolio company Karuna Therapeutics Inc. (NASDAQ:KRTX) climbed $4.02 (25%) to $20.02 Friday after raising $89.2 million through the sale of 5.6 million shares at $16 in an upsized IPO that valued Karuna at $361.2 million. Data are due this year from a Phase II trial of Karuna's lead candidate KarXT xanomeline/trospium chloride, a muscarinic receptor modulator, to treat psychosis associated with schizophrenia. Karuna's listing caps a busy week for IPOs (see "Karuna's CNS Double Play" & "IPO Window Wide Open").

Chi-Med parent prices secondary offering
The largest shareholder of Hutchison China MediTech Ltd. (LSE:HCM; NASDAQ:HCM) raised $288 million through the sale of 12 million ADSs at $24 in a secondary offering. The price is a 21% discount to Chi-Med's close of $30.20 on Thursday, when Chi-Med said after-hours that Hutchison Healthcare Holdings Ltd. hoped to sell 8.5 million ADSs. Chi-Med slipped $8.20 (27%) to $22.00 Friday. HHHL will own 51.2% upon the offering's completion; if the over-allotment is exercised fully, it will own 49.8% of Chi-Med's shares. Morgan Stanley is the sole underwriter. Chi-Med hopes to add a third listing in Hong Kong next quarter (see "Chi-Med Planning Hong Kong Listing")...