MAP Pharmaceuticals Inc. is adding $60 million through an initial public offering to support an upcoming Phase III trial of its late-stage aerosolized products for asthma and migraine.

The Mountain View, Calif.-based firm priced 5 million shares at $12 each, falling short of the anticipated $14 to $16 price range set last month and coming in well below the $86 million that MAP had hoped for when initially filing to go public in June.

Nevertheless, it's a healthy chunk of change for the company - in its SEC filing, MAP anticipates net proceeds will be $53.7 million, or $62.1 million if underwriters exercise the full 750,000-share overallotment option - and those funds primarily will be directed to ongoing development activities, including clinical trials for the most advanced candidates UDB and MAP0004.

And, on the plus side, MAP's stock (NASDAQ:MAPP) was well received in its debut, gaining $1.35, or 11.3 percent, Friday to close at $13.35.

The company's UDB (unit dose budesonide) is a nebulized version of the corticosteroid for pediatric asthma patients. Its formulation is expected to provide quicker administration to patients and offer lower doses than conventional nebulized budesonide, the leading pediatric asthma treatment that generates about $700 million in annual sales.

MAP0004, an inhaled version of dihydroergotamine (DHE), aims at providing quicker and more convenient pain relief over the oral triptans or intravenous DHE in migraine patients. MAP expects to start Phase III testing for both of those programs in early 2008.

MAP retains rights to both programs and intends to market them on its own in the U.S. with a sales force targeting pediatricians and neurologists.

Other programs in the pipeline also rely on MAP's inhalation drug delivery technologies, which involve the creation of inhalable drug particles designed to facilitate pulmonary delivery for treating both local respiratory and systemically treatable diseases.

Earlier in its pipeline, the firm has MAP0005, a combination of an inhaled corticosteroid and a long-acting beta-agonist, for asthma and chronic obstructive pulmonary disease, and MAP0001, an inhalable formulation of insulin for Type I and Type II diabetes. MAP0005 is expected to start a Phase IIa trial this year, and MAP0001 recently completed Phase Ia testing.

In addition to clinical work, MAP might also use a portion of its IPO proceeds for potential acquisitions and for other general corporate purposes. The funds will be added to MAP's cash position, which totaled $54.3 million as of June 30.

The firm's principal stockholders include Perseus-Soros Biopharmaceutical Fund LP, which will hold 3.9 million shares, or 20.1 percent of the company following the offering; Pequot Private Equity Fund III LP, which will hold 2.6 million shares, or 13.3 percent; Brookside Capital Partners Fund LP, which will hold 2.4 million shares, or 12.4 percent; Bay City Capital Fund IV LP, which will hold 2.3 million shares, or 12.1 percent; and Skyline Partners, which will hold 1.8 million shares, or 9.1 percent.

Following the offering, MAP will have about 19.3 million shares outstanding.

New York firms Merrill Lynch & Co. and Morgan Stanley & Co. Inc. are serving as joint book-running managers, with Deutsche Bank Securities Inc., also of New York, acting as co-lead manager.