Alzamend Neuro ALZN, a developer of treatments for neurodegenerative diseases and psychiatric disorders, soared in its first trading day after its IPO but has pulled back from its opening.
Shares of the five-year-old Tampa, Fla., company, which has a treatment for Alzheimer’s disease, on Tuesday opened at $29 and peaked at $33.55.
Its initial public offering price was $5 a share. The stock recently traded at $14.81.
Alzamend has begun preparing an investigational-new-drug application for AL001, which treats Alzheimer’s, other neurodegenerative diseases and psychiatric disorders, Bloomberg reports.
The company plans to file the application with the Food and Drug Administration this month.
Alzamend hasn’t earned any revenue. Its loss widened to $3.8 million for the nine months ended Jan. 31 from $3.2 million a year earlier.
Bernstein’s Ronny Gal lifted his rating on the Cambridge, Mass., company to outperform from market perform. He set his price target at $500.
In other health-care news, ITeos Therapeutics (ITOS) - Get Report leaped Monday after the drugmaker said GlaxoSmithKline (GSK) - Get Report would pay up to $2.1 billion for it to develop cancer drugs.
The Cambridge, Mass., company and Glaxo unveiled a deal to co-develop and co-commercialize EOS-448, a monoclonal antibody in Phase 1 development as a potential treatment for patients with cancer.
Under terms of the deal, ITeos will receive $625 million up front. ITeos will then be eligible to receive as much as $1.45 billion in milestone payments.