Foundation Medicine IPO Greeted with Open Wallets

Health and Healthcare

Published: September 25, 2013 12:26 pm

Last Updated: April 27, 2020 9:42 pm

Source: Thinkstock

Cancer-treatment company Foundation Medicine Inc. (NASDAQ: FMI) held its initial public offering (IPO) Wednesday morning. The company sold 5.9 million shares at an offering price of $18 a share, above its proposed range of $14 to $16 for a total of 5 million shares. Following the offering the company will have around 27 million shares outstanding, not including the underwriters’ options on 833,300 additional shares.

At the IPO price the company raised about $106 million. Foundation Medicine expects to use its net proceeds to fund expansion, new and ongoing clinical trials, working capital, and general corporate purposes. The company plans to spend about $18 million to expand its sales force in the U.S. and internationally, another $12 million to fund clinical trials, and $10 million on both expanding its laboratory operations and infrastructure expansion.

Foundation Medicine is a commercial-stage company that sells molecular information derived from its proprietary methods for analyzing cancer tumors to physicians and biopharmaceutical companies.

Shares have jumped about 78% shortly after noon, to $32.00 after hitting a high of $33.25.

Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)

If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.

Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.