This Company Gained 76% in its IPO -- and It Isn't Even a Tech Company

This Company Gained 76% in its IPO -- and It Isn't Even a Tech Company

In a sure sign that the biotech bull market is alive and well, Rhythm Pharmaceuticals (NASDAQ: RYTM) raised almost $120 million at $17 per share in its initial public offering on Thursday. In its prospectus with the U.S. Securities and Exchange Commission, the biotech said it expected to raise $115 million at between $14 and $16 per share.

Investors buying on the open market thought the IPO buyers got a steal even at their upsized price, sending shares of Rhythm Pharmaceuticals up 76% on its first day trading on the Nasdaq. Shares have since pulled back, but are still trading well above the IPO price.

Investors appear to be basing their euphoria on efficacy results from nine patients in phase 2 trials testing Rhythm's lead drug setmelanotide. That's nine. Not ninety. Nine...split between three different diseases.

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Source: Fool.com