Catabasis Pharmaceuticals Inc. made a respectable debut on Nasdaq after pricing its IPO, generating $60 million from the sale of 5 million common shares at $12 apiece. Shares climbed to $13.49 when the company began trading Thursday, under the ticker CATB, before closing at $13 for a gain of $1, or 8.3 percent, on its opening day.
The Cambridge, Mass.-based company granted underwriters a 30-day option to purchase up to 750,000 additional common shares, potentially adding $9 million to its raise. Catabasis fell short of its goal to price within a range of $13 to $15 but made up for the shortfall with the increasingly common ploy of upsizing the offering from the 4.3 million shares cited in its prospectus.
Catabasis is advancing candidates that use its Safely Metabolized And Rationally Targeted, or SMART, linker