Children gather to watch Manchester United performers outside the New York Stock Exchange on Friday, Aug. 10, 2012 in New York. Shares of soccer club Manchester United made their public debut Friday, edging up slightly as shareholders' enthusiasm for the celebrated team was offset by worry about its debt load and financial performance. (AP Photo/Jin Lee)
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Children gather to watch Manchester United performers outside the New York Stock Exchange on Friday, Aug. 10, 2012 in New York. Shares of soccer club Manchester United made their public debut Friday, edging up slightly as shareholders' enthusiasm for the celebrated team was offset by worry about its debt load and financial performance. (AP Photo/Jin Lee)
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FILE - In this Tuesday, Jan. 15, 2013, file photo, Facebook CEO Mark Zuckerberg speaks at Facebook headquarters in Menlo Park, Calif. Facebook reports fourth-quarter earnings on Wednesday, Jan. 30, 2013. (AP Photo/Jeff Chiu, File)
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FILE -In this Tuesday, Oct. 2, 2012, file photo, Facebook CEO Mark Zuckerberg, center, addresses students of Moscow's State University in Moscow, Russia. Facebook's third-quarter results released Tuesday, Oct. 23, 2012, inched past Wall Street's expectations, offering evidence that the company is making inroads in mobile advertising, a longtime concern among investors. (AP Photo/Alexander Zemlianichenko)
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A Facebook worker waits for friends to arrive outside of Facebook headquarters in Menlo Park, Calif., Friday, Aug. 17, 2012. Facebook stock is trading at $19 and has lost half its market value since its May public offering. (AP Photo/Paul Sakuma)
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FILE - In this July 11, 2012 file photo, Netflix CEO Reed Hastings attends the Allen & Company Sun Valley Conference in Sun Valley, Idaho. Netflix Inc. is facing scrutiny from government regulators for a Facebook post by Hastings in July that may have boosted the online video company’s stock price. Neflix said Thursday, Dec. 6, 2012, that the Securities and Exchange Commission informed it that its staff is recommending civil action be brought against the company and Hastings. The reason: Hastings’ July 3 post in which he said Netflix’s online video viewing “exceeded 1 billion hours for the first time ever in June.” (AP Photo/Paul Sakuma, File)
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Boise Cascade Chief Executive Officer Thomas Carlile, applauds during his company's IPO on the floor of the New York Stock Exchange, Wednesday, Feb. 6, 2013. Strong earnings reports from media giants Disney and Time Warner aren't impressing investors in early trading, and major U.S. market indexes are opening lower. (AP Photo/Richard Drew)
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Boise Cascade Chief Executive Officer Thomas Carlile, left, confers with specialist Christopher Culhane during his company's IPO, on the floor of the New York Stock Exchange Wednesday, Feb. 6, 2013. Strong earnings reports from media giants Disney and Time Warner aren't impressing investors in early trading, and major U.S. market indexes are opening lower. (AP Photo/Richard Drew)
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Boise Cascade Chief Executive Officer Thomas Carlile, second from right, joined by members of the companyís executive management team, rings the opening bell of the New York Stock Exchange, to celebrate their IPO, Wednesday, Feb. 6, 2013. Strong earnings reports from media giants Disney and Time Warner aren't impressing investors in early trading, and major U.S. market indexes are opening lower. (AP Photo/Richard Drew)
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FILE - In this Tuesday, Dec. 11, 2012 file photo, specialist Christian Sanfilippo works on the floor of the New York Stock Exchange, in New York. Despite many challenges, 2012 turned out to be a surprisingly good year for stocks. The Dow Jones industrial average, the Standard & Poor’s 500 and the Nasdaq composite index will all end the year substantially higher, despite losing ground in the final days of the year as concerns about the looming fiscal cliff mount. (AP Photo/Richard Drew, File)
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FILE - In this Tuesday, March 13, 2012 file photo, President Barack Obama's speech is shown on a television monitor on the floor of the New York Stock Exchange, in New York. In 2012, stocks wavered ahead of a presidential election that at times seemed too close to call, and while Obama ultimately reclaimed the White House by a comfortable margin, the Republicans retained control of the House. (AP Photo/Richard Drew, File)
Enanta Pharmaceuticals raises $56 million in IPO
Enanta Pharmaceuticals Inc. raised $56 million in an initial public offering of 4 million shares after the drug developer priced the stock at $14 per share, which was at the low end of its expected range.
Shares will start trading Thursday under the ticker symbol ENTA on the Nasdaq stock market.
The Watertown, Mass., company said Wednesday that its underwriters have a 30-day option to buy up to an additional 600,000 shares to cover any excess demand. It had expected a range of $14 to $16 for shares in the IPO.
Enanta is developing potential hepatitis C treatments, but it has no products on the market yet. Its most advanced product, an experimental drug labeled ABT-450, started late-stage clinical testing last October.
Enanta said in a filing with the Securities and Exchange Commission that it will be at least two years before the drug is submitted to regulators for approval. The company is collaborating with another drugmaker, AbbVie Inc., on ABT-450.
Enanta said worldwide sales for hepatitis C treatments topped $3.5 billion in 2011, and it expects that to increase to between $10 billion and $20 billion in the next decade.
Hepatitis C is a virus that can lead to life-threatening liver damage and is the main cause of liver transplants in the United States. The disease is spread through the blood, and that can happen through sharing intravenous drug needles or having sex with an infected person. It can take years to manifest.
Analysts see hepatitis treatments as potentially lucrative for drugmakers because they expect the virus to become a growing health problem as the U.S. baby boom generation ages. Drug makers are working to develop treatments that don't involve interferon, which causes serious side effects, including flu-like symptoms that can last for months.
Enanta said ABT-450 is being developed in treatment regimens that don't use interferon.
The company plans to use proceeds from the offering to help with drug research and development and for working capital. Enanta also is developing antibiotics to treat multi-drug resistant bacteria like MRSA.
JP Morgan Securities and Credit Suisse Securities are acting as joint book-running managers for the offering, which is expected to close March 26. Leerink Swann and JMP Securities are co-managers.
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