Cancer-treatment company Foundation Medicine Inc. (FMI) held its initial public offering (IPO) Wednesday morning. The company sold 5.9 million shares at an offering price of $18 a share, above its proposed range of $14 to $16 for a total of 5 million shares. Following the offering the company will have around 27 million shares outstanding, not including the underwriters options on 833,300 additional shares. <\/p>\n
At the IPO price the company raised about $106 million. Foundation Medicine expects to use its net proceeds to fund expansion, new and ongoing clinical trials, working capital, and general corporate purposes. The company plans to spend about $18 million to expand its sales force in the U.S. and internationally, another $12 million to fund clinical trials, and $10 million on both expanding its laboratory operations and infrastructure expansion. <\/p>\n
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Foundation Medicine is a commercial-stage company that sells molecular information derived from its proprietary methods for analyzing cancer tumors to physicians and biopharmaceutical companies. <\/p>\n
Shares have jumped about 78% shortly after noon, to $32.00 after hitting a high of $33.25. <\/p>\n
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Foundation Medicine IPO Greeted with Open Wallets<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Cancer-treatment company Foundation Medicine Inc. (FMI) held its initial public offering (IPO) Wednesday morning. The company sold 5.9 million shares at an offering price of $18 a share, above its proposed range of $14 to $16 for a total of 5 million shares Continue reading