resTORbio raises $85M IPO

resTORbio Inc. (NASDAQ:TORC) gained $1.88 (13%) to $16.88 in its first day of trading Friday after raising $85 million through the sale of 5.7 million shares at $15 in an IPO underwritten by BofA Merill Lynch, Leerink Partners, Evercore ISI and Wedbush PacGrow. The price is at the midpoint of resTORbio’s proposed $14-$16 range and values the company at $407.9 million.

resTORbio is developing RTB101, a mammalian target of rapamycin complex 1 (mTORC1) inhibitor, to prevent respiratory tract infections in elderly patients. A Phase IIb trial of the candidate in combination with Afinitor everolimus is ongoing, with top-line data expected next half. resTORbio has exclusive rights to RTB101 from Novartis AG (NYSE:NVS; SIX:NOVN)...