Of the four initial public offerings, or IPOs, to hit the markets on Wednesday, only one ended higher by day's end. The lucky stock in particular was Agios Pharmaceuticals (NASDAQ:AGIO), which went public at $18 per share, and closed Wednesday at $31.28, boasting a hefty 73.8% single-day gain. Agios, which raised over $100 million yesterday through the issuance of about 5.9 million shares, is focused on developing drugs to treat cancer and inborn errors of metabolism, or IEMs. Rare diseases such as IEMs are known as "orphan diseases" and, by definition, have a very small affected population.
This funding was vital for the company, which plans to use the money to develop and commercialize its future products, as well as finance research and development, working capital, and other costs. Agios filed an investigational new drug application with the FDA in June, for what is the company's first product candidate.
JPMorgan and Goldman Sachs functioned as the lead underwriters of the IPO, while Cowen and Company, the broker-dealer division of Cowen Group, and Leerink Swan, acted as co-managers of the offering, according to an Agios press release.