Top Healthcare Stocks
Healthcare stocks were slightly higher today with the NYSE
Healthcare Sector Index advancing about 0.3% and shares of
healthcare companies in the S&P 500 also climbing about 0.3% as
In company news, upstart biotechnology company Zafgen Inc (
) Thursday leapt out of the starting gate after pricing an upsized
initial public offering of stock, selling 6 million shares of its
common stock at $16 each, the top of its expected price range.
ZFGN shares recently were up nearly 23% at $19.64 each, slowly
drifting lower after pushing to an early high of $21.01 soon after
opening at $20 a share.
The company added 1 million shares to the offering shortly
before pricing earlier this morning. It also issued 30-day options
to underwriters to purchase up to 900,000 additional shares to
cover possible overallotments.
After deducting underwriter discounts and commissions, ZFGN
expects to pocket around $89.2 million in net proceeds, increasing
to $100.2 million if underwriters fully exercise their options,
according the final prospectus for the deal.
It plans to use around $23 million to fund Phase III testing of
beloranib drug candidate to treat obesity as well as $10 million
for a Phase IIa trial of beloranib as a potential treatment for
craniopharyngioma-associated obesity and $6 million for a Phase II
trial of the drug to treat severe obesity in the general
Remaining funds will be used for ongoing research and
In other sector news,
(+) STEM, Climbs to 52-week high after reporting 65% decrease in
the pace of geographic atrophy during Phase I/II testing of its
human neural stem cell platform in patients with dry age-related
(-) PETX, Begins enrolling canine patients for a pair of
nationwide trials to evaluate its AT-005 monoclonal antibody, which
is conditionally licensed by the Department of Agriculture to aid
in the treatment of T-cell lymphoma in dogs.
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