By Lynn Cowan
Biopharmaceutical firm Tesaro Inc. (TSRO) made minor gains on its first day of trading Thursday, the second stock to launch in the wake of the initial public offering market's recent dry spell.
The company's shares opened at $14 a share on the Nasdaq, up 3.7% from its initial public offering price of $13.50; it was recently changing hands at $13.57, up less than 1%. It sold six million shares at a price within its expected $12 to $15 range.
Tesaro's IPO is the first deal to debut on the Nasdaq since Facebook Inc.'s (FB) disappointing performance on May 18. Unlike Facebook, Tesaro didn't face any technical glitches on Nasdaq.
A second Nasdaq IPO is expected Thursday morning from software firm Exa Corp. (EXA), which priced below its range.
Tesaro and Exa's deals come a day after energy partnership EQT Midstream Partners L.P. (EQM) went public on the New York Stock Exchange, gaining 13.1% on its first day of trading. EQT Midstream was the first U.S. IPO to debut since Facebook's deal 39 days earlier.
Tesaro focuses on developing treatments for cancer patients.
Unlike most cancer-related biopharmaceutical firms, Tesaro isn't focused solely in the business of trying to discover biochemical ways to target and destroy tumors. Its most advanced product, in Phase 3 clinical trials, aims at preventing chemotherapy-induced nausea and vomiting.
At an earlier stage is a treatment for patients with solid tumors and one for non-small cell lung cancers.
The company was founded in March 2010 by former executives of MGI Pharma Inc., an oncology and acute-care focused biopharmaceutical company. Its investors include Kleiner Perkins, Caufield Byers, Venrock, Oracle Investment Management and Deerfield Capital.
It is still at a very early stage of operating, and hasn't generated any revenue or profits. It expects to continue to incur losses for the foreseeable future.
-Write to Lynn Cowan at [email protected]