NEW YORK (AP) – Shares of Map Pharmaceuticals Inc. jumped more than 10 percent in their debut on Friday, after the drug developer's initial public offering priced well below expectations.
In afternoon trading, the shares gained $1.23 to $13.23, about 10.3 percent higher than the IPO price of $12. After opening at $12.75, the stock has traded between $12.25 and $14 during the session.
According to Securities and Exchange Commission filings, Map Pharmaceuticals had expected the offering of 5 million shares to price between $14 and $16 per share.
Map Pharmaceuticals uses inhalation technologies to deliver drugs for the treatment of pediatric asthma and migraines. The company plans to initiate late-stage clinical programs for two advanced drug candidates in early 2008, according to the filing.
Merrill Lynch, Morgan Stanley and Deutsche Bank Securities are underwriting the offering. The Mountain View, Calif.-based company gave the underwriters the option to purchase up to 750,000 additional shares to cover any overallotments.
Map Pharmaceuticals' shares are listed on the Nasdaq Stock Market under the symbol “MAPP.”
Map Pharma has raised around $107 million in total VC funding since its 2003 formation, including a $50 million Series D round earlier this year. Shareholders include Bay City Capital, Perseus-Soros Biopharmaceutical Fund, Pequot Ventures, Brookside Capital, Skyline Ventures and D.W. Shaw Group. www.mappharma.com