NEW YORK (AP) – Jazz Pharmaceuticals Inc., a drug company that specializes in treatments for neurological and psychiatric conditions, lowered the expected price range of its initial public offering, according to a regulatory filing Thursday with the Securities and Exchange Commission.
Jazz now predicts the IPO, which is expected this week, will price between $20 and $21 per share. Previously, the company anticipated a price between $24 and $26 per share.
Expected net proceeds from the offering were also lowered to $112.1 million, from $137.2 million. The revised figure assume an offering price of $20.50, the midpoint of the expected range.
The company still plans to offer 6 million shares in the offering.
Jazz has granted the underwriters an option to purchase up to an additional 900,000 shares to cover over-allotments. If the option is exercised in full, Jazz's net proceeds will increase to $129.2 million.
Jazz expects to use the proceeds to fund the planned U.S. launch of its obsessive compulsive disorder and social anxiety disorder treatment Luvox CR, late-stage clinical trials of its chronic pain treatment JZP-6 and continued development of its portfolio of clinical and early-stage product candidates.
The company will also use proceeds for working capital, capital expenditures and other general corporate purposes.
Jazz will have about 24.6 million shares outstanding after the offering.
Morgan Stanley and Lehman Brothers are lead underwriters for the offering. Credit Suisse Securities and Natexis Bleichroeder are also selling shares to investors.
The Palo Alto, Calif.-based company has applied to list its shares on the Nasdaq Stock Market under the symbol “JAZZ.”