Osmotica Pharmaceuticals, which develops and sells extended-release neurology drugs, lowered the proposed deal size for its upcoming IPO on Wednesday.
The Bridgewater, NJ-based company now plans to raise $58 million by offering 8.3 million shares at a price of $7. The company had previously filed to offer the same amount of shares at a range of $14 to $16. At $7, Osmotica Pharmaceuticals will raise 53% less in proceeds than previously anticipated. Insiders now intend to purchase up to $14 million of the IPO (24% of the deal); insiders had not previously indicated interest in purchasing any amount of the IPO.
Osmotica Pharmaceuticals was founded in 1986 and plans to list on the Nasdaq under the symbol OSMT. Jefferies, Barclays, RBC Capital Markets and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price this week.
