7:55 AM
 | 
Sep 14, 2018
 |  BC Extra  |  Financial News

Principia jumps after $106.3M IPO

Principia Biopharma Inc. (NASDAQ:PRNB) leaped $15.65 (92%) to $32.65 on Friday, its first day of trading, after raising $106.3 million late Thursday through the sale of 6.3 million shares at $17 in an IPO underwritten by BofA Merrill Lynch, Leerink, Wells Fargo Securities and Baird. The offering values the company at $386.4 million. The company priced the offering at the top of its proposed range of $15-$17.

Friday's move reflects a gain in market cap of $355.7 million.

Principia proposed on Aug. 17 to raise up to $86.3 million in the offering. Prior to the IPO, the company had raised about $177 million since it began operations in 2011 (see "With Btk Program Bound for Phase III, Principia Seeks IPO").

The biotech plans to begin Phase III testing this half of lead candidate PRN1008 to treat pemphigus vulgaris. PRN1008, a reversible covalent Bruton's tyrosine kinase (Btk) inhibitor, is also in Phase II testing to treat immune thrombocytopenic purpura (ITP). Data from that trial are due in 2H19.

Principia uses its Tailored Covalency platform to develop small molecule reversible or irreversible covalent inhibitors that it believes will provide the potency of IV biologics with the convenience of oral therapeutics (see "Principia: Reversing Covalency").

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