Fusion Pharmaceuticals Stock Rises in Nasdaq Debut

Shares of Fusion Pharmaceuticals, a clinical-stage producer of cancer medications, rose in their Nasdaq debut.
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Shares of Fusion Pharmaceuticals FUSN, a clinical-stage producer of cancer medications, on Friday rose in their Nasdaq debut.

The clinical-stage cancer medicine producer, with key offices in Hamilton, Ontario, and in Boston, on Thursday had priced its initial public offering of 12.5 million shares at $17.

The offering is valued at $212.5 million before deducting underwriting discounts and commissions. 

Fusion earlier this week had proposed to offer 8.4 million shares at $14 to $16. On Wednesday it increased the offering by 1.25 million shares.

At last check Fusion Pharmaceuticals shares were trading up 1.5% at $17.25. They have traded on Friday as high as $19.

Morgan Stanley, Jefferies and Cowen were book-running managers for the offering.

The underwriters have a 30-day option to buy an additional 1.9 million common shares at the offering price.

The IPO market has been hot for biotech companies. In the second quarter nearly every biotech IPO has upsized its offering or priced above the midpoint of its target range, according to a note from Renaissance Capital earlier this week. 

Biotech debuts accounted for two-thirds of the 39 IPOs in the three-month period. 

Fusion is part of a so-called precision-oncology movement, companies with more targeted treatments, according to the Globe and Mail.

Fusion itself calls its treatments the "next-generation of radiopharmaceuticals for precision medicine."

The company acquires antibodies from other drug companies, then links those to radioactive particles to kill cancer cells. 

Fusion's lead program, FPI-1434, is in a Phase I clinical trial, the company said.