Clementia rises after pricing $120M IPO

Bone disease company Clementia Pharmaceuticals Inc. (NASDAQ:CMTA) gained $1.35 to $16.35 in its first day of trading Wednesday after raising $120 million through the sale of 8 million shares at $15 in an IPO underwritten by Morgan Stanley, Leerink, Wedbush and BTIG. The price was at the top of Clementia’s proposed $13-$15 range and values the company at $445.1 million.

Clementia’s lead candidate palovarotene (R667) is a selective small molecule retinoic acid receptor gamma (RARG) agonist. This year, the company plans to start the Phase III MOVE trial of palovarotene to treat fibrodysplasia ossificans progressiva and a Phase II/III trial of the product to treat multiple osteochondroma. Interim data from both trials are expected in 2019...