MapLight Therapeutics (MPLT.O), opens new tab debuted on the Nasdaq on Monday with a valuation of $787 million, becoming the first company to go public under a rarely used regulatory provision since the start of the U.S. government shutdown.<\/p>\n
Shares of the Redwood City, California-based company, which is developing treatments for central nervous system disorders, opened at $19 apiece, nearly 12% above the initial public offering price of $17.<\/p>\n
With the U.S. Securities and Exchange Commission closed due to the government shutdown, more than half a dozen companies have tapped a provision that allows registration statements to automatically become effective 20 days after filing, rather than wait for the regulator’s approval.<\/p>\n
MapLight, backed by Novo Nordisk’s controlling shareholder Novo Holdings, raised $250.8 million in the IPO by selling 14.75 million shares. Affiliates of Wall Street giant Goldman Sachs (GS.N), opens new tab bought 476,707 shares of MapLight in a concurrent private placement.<\/p>\n
The company’s lead experimental drug candidate, ML-007C-MA, is currently being developed in mid-stage studies to treat schizophrenia, and hallucinations and delusions caused by the Alzheimer’s disease.<\/p>\n
BIOTECH THAW
\nBiotech IPOs are also making a nascent comeback after a months-long dry spell. The sector has been grappling with regulatory uncertainty and poor returns, side-lining many would-be issuers.
\nLB Pharmaceuticals (LBRX.O), opens new tab, which debuted last month, was the first U.S. biotech to raise more than $50 million in an IPO since February. Drug developer Evommune is expected to go public next month.<\/p>\n
“The biotech IPO market is slowly thawing but it remains constrained by the many 2021-2023 debuts that are still trading below their offer price,” said IPOX Research Associate Lukas Muehlbauer.<\/p>\n
“This challenging environment makes it especially difficult for early-clinical stage firms to convince investors, who are demanding proof-of-concept with later-stage data.”
\nOptimism around further rate cuts by the Federal Reserve has also boosted sentiment, with the S&P Biotech ETF (XBI.P), opens new tab gaining more than 20% this year.<\/p>\n","protected":false},"excerpt":{"rendered":"
MapLight Therapeutics (MPLT.O), opens new tab debuted on the Nasdaq on Monday with a valuation of $787 million, becoming the first company to go public under a rarely used regulatory provision since the start of the U.S. government shutdown. Shares of the Redwood City, California-based company, which is developing treatments for central nervous system disorders, […]<\/p>\n","protected":false},"author":2,"featured_media":2342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[728],"class_list":{"0":"post-2341","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-sitefansalaran-international-news","8":"tag-novo-backed-maplight-valued-at-787-million-after-shares-jump-in-nasdaq-debut"},"yoast_head":"\n