Strongbridge Biopharma, a late-stage biotech developing therapies for rare endocrine disorders, slashed the proposed deal size for its upcoming IPO on Wednesday. It also removed lead left bookrunner BofA Merrill Lynch.
The Trevose, PA-based company now plans to raise $25 million by offering 2.5 million shares at $10 per share. Its shares are quoted on the Norwegian OTC under the symbol SBBP, and last traded at $14.82. The company had originally filed to offer 4.25 million shares at $17.93, where it was then trading in Norway. Its IPO had been scheduled for the week of September 28. At the revised price, Strongbridge Biopharma will raise 67% less in proceeds than previously anticipated.
Strongbridge's last filing did not include insider buying on the IPO, but existing shareholders now plan to invest up to $20 million on the offering (80% of the deal).
Strongbridge Biopharma, which was founded in 1996, plans to list on the Nasdaq under the symbol SBBP. Stifel is the sole bookrunner on the deal. It is expected to price later this week.
