KDMN Kadmon Holdings Inc

Shares of Kadmon Holdings LLC slipped in their trading debut Wednesday, a disappointment for the drug developer launched by high-profile executive Sam Waksal.

The shares opened at $11.55 a share, after pricing at $12. In early trading, the stock fell 9% to $10.90.

The offering, which raised $75 million, comes in what has been a weak period for both biotech shares and IPOs, despite the Dow industrials and S&P 500 racing to record highs. In a regulatory filing Tuesday, Kadmon lowered the anticipated share price of the offering and increased the number of shares it sold, amid weaker interest in the IPO than some had hoped, according to a person close to the matter.

When Mr. Waksal launched the firm in 2010 many on Wall Street were wary of associating with a high-profile executive who had served five years in federal prison for insider trading and other crimes. But big-name investors who backed the firm were Steven A. Cohen, Daniel Loeb and Ronald Burkle, investment banker Ken Moelis and GoldenTree Asset Management LP.

Kadmon is developing drugs for a range of diseases. One has shown some effectiveness combating autoimmunity or misdirected immune responses. Another targets the growth of different cancers. Kadmon also is developing proteins for cancer immunotherapy, a hot biotech area. As with any biotech startup, it isn't clear when or if Kadmon's key drugs will reach the market.

Dr. Waksal, 68 years old, left Kadmon early this year in advance of the IPO in keeping with a consent decree with the Securities and Exchange Commission prohibiting him from serving as an executive or director of a public company.

In 2002, he pleaded guilty to securities, bank and wire fraud, obstruction of justice, perjury and related conspiracy charges. In prison, he sometimes lectured prisoners on genetics and other matters, friends say. He was released in 2008.

Dr. Waksal remains a shareholder of Kadmon I LLC, which will control 12.1% of the company's shares after the IPO, and his brother, Harlan, the company's chief executive, will own nearly 4%.

Write to Gregory Zuckerman at gregory.zuckerman@wsj.com

(END) Dow Jones Newswires

July 27, 2016 10:25 ET (14:25 GMT)

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