Moderna Declines in Public-Market Debut
December 07 2018 - 1:07PM
Dow Jones News
By Kimberly Chin
Biotech company Moderna Inc.'s shares declined in their first
day of public trading, a day after the company's IPO came in strong
amid a jittery stock-market backdrop.
The stock opened at $22 on the Nasdaq Stock Market under the
symbol MRNA. That is 4.3% below its initial public offering price.
The stock recently traded down about 6%.
On Thursday, the Cambridge, Mass., company sold 26.3 million
shares--more than expected -- that were priced at $23 each, in line
with expectations. It raised $604.3 million, giving the company a
valuation of roughly $7.5 billion.
The company has drawn much fanfare, luring investors on the
promise that its messenger RNA technology will bring new treatments
for cancer, heart disease and other diseases. Also boosting the
attraction are partners like AstraZeneca PLC, Merck & Co. and
Vertex Pharmaceuticals Inc.
Moderna's IPO process comes as the broader stock market
whipsaws. Its shares priced Thursday after a late rally on
potential Federal Reserve dovishness all but erased the day's deep
declines. On Friday morning, it began trading amid a renewed
selloff.
Critics have raised concerns that there is not much public
information out about the company, and that some of its programs
remain relatively unproven since many are still in the earlier
stages of clinical testing. Only a small percentage of drugs and
treatments have been approved by the U.S. Food and Drug
Administration.
Moderna's operating expenses in 2017 topped $475 million, while
its revenue -- from collaborations and grants -- totaled just over
$200 million.
Moderna, which was founded in 2010, has 21 drug and vaccine
research programs, including 10 that have progressed beyond the
laboratory and are being tested in humans.
Before it began trading, Moderna's IPO process had drawn some
controversy. The company disclosed on Tuesday that it had dropped
an underwriter, claiming the firm had made "unauthorized
communications" about the offering, Moderna said in a filing.
Moderna's debut, one of the biggest initial public offerings in
the space, is considered to be one of the last big IPOs in a year
that brought in more than 200 new listings and raised more than $58
billion.
It has also been a banner year for biotech offerings. Around 60
biotech and pharmaceutical companies have listed shares in the U.S.
this year, raising at least $6.4 billion, according to
Dealogic.
--Corrie Driebusch and Jonathan D. Rockoff contributed to this
article.
(END) Dow Jones Newswires
December 07, 2018 12:52 ET (17:52 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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