Diabetes drug developer Structure Therapeutics stock soars 73% in debut (update)
Structure Therapeutics GPCR stock soared 73% Friday after the diabetes drug developer raised $161M through an upsized US initial public offering.
American Depositary Shares of the company, which has operations in both the US and China, opened at $25 after being priced at $15 apiece. The stock hit an early high of $27.46 and ended the session at $26.
Structure offered 10.7M ADSs priced at $15 apiece, with each ADS representing three ordinary shares. Underwriters were granted a 30-day option to buy up to 1.6M additional shares to cover over-allotments. Jefferies, SVB Securities, Guggenheim Securities and BMO Capital Markets are serving as joint bookrunners on the deal.
Earlier this week, Structure said in a filing that it was looking to raise around $125M.
Structure, formerly known as ShouTi, is developing drugs that target G-protein receptors, or GPCRs, to treat pulmonary, metabolic and cardiovascular diseases. Its lead drug candidate, GSBR-1290, is a GLP-1 receptor agonist for the treatment of Type 2 diabetes.
Other leading makers of GLP-1 agonists for diabetes include Eli Lilly LLY, Novo Nordisk NVO and AstraZeneca AZN. Investor interest in the drugs has grown in recent weeks amid reports that they're being increasingly prescribed for weight loss.
For more on Structure, check out Donovan Jones's "Structure Therapeutics Readies $125M IPO."