Phathom Pharmaceuticals Rises Almost 30% After $182 Million

(Bloomberg) -- Phathom Pharmaceuticals Inc. rose 29.5% after expanding its initial public offering to raise $182 million, adding to a wave of biomedical and biotechnology going public.

Shares of Phathom closed at $24.60 in first day of trading Friday, giving the company a market value of $678 million.

Phathom, based in Buffalo Grove, Illinois, sold 9.56 million shares for $19 each on Thursday. The company earlier had marketed 7.9 million shares for $18 to $20.

The listing is one of 38 by biotechnology or biomedical companies on U.S. exchanges this year. While those IPOs have accounted for only $5.3 billion of the total $47 billion raised, they made up about a quarter of the 156 listings, according to data compiled by Bloomberg.

Cabaletta Bio Inc., which is developing treatments for autoimmune diseases, raised $75 million in its IPO Thursday. It priced its shares at $11, below the target range of $14 to $16. They closed at $10 on Friday.

Phathom is focused on commercializing novel treatments for gastrointestinal diseases. The company lost $89 million in the six months ended June 30, according to its filings with the U.S. Securities and Exchange Commission.

Its offering was led by Goldman Sachs Group Inc., Jefferies Financial Group Inc. and Evercore Inc. Its shares are trading on the Nasdaq Global Market under the symbol PHAT.

©2019 Bloomberg L.P.

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