Pharmasset IPO’s at Low End of Range ($9/sh)
[This was the company’s second IPO attempt; in 2006, a planned IPO at $12-14 was canceled. Pharmasset has a phase-3 drug (Clevudine) for HBV and a phase-1drug (R7128) for HCV. The Nasdaq ticker is the ultra-catchy “VRUS.”]
yahoo.reuters.com
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Thu Apr 26, 2007 7:09 PM ET
NEW YORK, April 25 (Reuters) - Pharmaceutical company Pharmasset Inc. on Thursday raised $45 million with an initial public offering that was priced at the bottom of a lowered forecast range.
The offering of 5 million shares, decreased from 6 million, sold for $9 per share, compared with a forecast range of $9 to $11, which had been lowered from a range of $12 to $14, according to an underwriter. The offering price gives the company an initial market capitalization of $194 million.
Based in Princeton, New Jersey, the company plans to use net proceeds from the offering, which represents a 23 percent stake in the company, for Phase 3 clinical trials.
Pharmasset focuses on medications to treat viral infections, including the viruses hepatitis B, hepatitis C and human immunodeficiency.
Led by Banc of America Securities LLC and UBS Securities, underwriters have the option to buy another 750,000 shares to cover overallotments, according to an underwriter.
The company applied to list its shares on the Nasdaq under the symbol VRUS .
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