Shares of Sage Therapeutics Inc. (NASDAQ:SAGE), a specialist in rare central nervous system disorders, climbed 67 percent Friday as the Cambridge, Mass.-based company raised $90 million in an initial public offering (IPO) by selling 5 million shares at $18 each, before overallotments.
Pricing at the top of its range, Sage showed embers still remain from this year's fiery IPO streak, even as demand for new issues may be beginning to cool following more than $3 billion raised in industry IPOs year-to-date. (See BioWorld Today, July 7, 2014.)
Sage plans to use the funds to back phase I/II development of SAGE-547, its lead candidate for the treatment of super-refractory status epilepticus (SRSE), a life-threatening condition in which the brain is in a state of persistent seizure, and early stage development costs for two additional status epilepticus (SE) candidates.
J.P. Morgan Securities LLC and Goldman, Sachs & Co.