Veradermics Inc experienced a strong market debut on the New York Stock Exchange, with its stock climbing 118% in initial trading after the company set its upsized initial public offering price at $17.00 per share. The company began trading under the ticker symbol "MANE."
The offering generated approximately $256.3 million in gross proceeds from the sale of 15,077,647 shares, before deducting underwriting discounts, commissions and other offering-related expenses. In addition, Veradermics granted underwriters a 30-day option to acquire up to 2,261,647 additional shares at the IPO price.
Veradermics is a dermatologist-founded, late clinical-stage biopharmaceutical company that says it is focused on developing therapies for common aesthetic and dermatological conditions. The company did not disclose specific pipeline candidates or details about individual programs in the announcement accompanying the offering.
The offering was managed on a joint book-running basis by Jefferies, Leerink Partners, Citigroup and Cantor. The offering is expected to close on Tuesday, subject to customary closing conditions.
Financial backdrop
The company reported widening losses leading up to the IPO. For the nine months ended September 30, Veradermics recorded a net loss of $48 million, more than double the $21 million loss reported for the same period a year earlier. The expanded loss figure was included in the company disclosure that accompanied the offering and stands as a notable element of the firm’s pre-listing financial profile.
Market reaction and context
Despite the deterioration in recent operating results, public market demand drove a significant first-day gain in the stock following pricing. The listing and associated capital raise provide the company with proceeds intended to support its development activities, though specifics on allocations were not provided in the announcement.
What remains unclear
The company described its objective as addressing "pervasive treatment challenges in highly prevalent aesthetic and dermatological conditions," but the offering disclosure did not enumerate the precise treatments in its pipeline or provide detailed program-level information.
Investors and market participants will watch the company’s use of proceeds and future clinical and financial disclosures as the newly public firm moves forward with operations as a listed company.