Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Hamilton’s Fusion Pharmaceuticals Inc. is set to start trading Friday on Nasdaq after setting its initial public offering price at US$17 a share amid strong investor demand.

That’s up from a range of US$14 to US$16 set by the company and its underwriters earlier this week.

With the proceeds from selling 12.5 million shares, plus an option for its underwriters to buy another 1.875 million at the issue price, the cancer drug developer could raise as much as US$244-million in gross proceeds from the deal, the company said late Thursday. That’s just shy of the US$253-million raised last week by Montreal’s Repare Therapeutics in what was the largest IPO by a Canadian biotech firm.

Story continues below advertisement

The funding sets Fusion’s market capitalization at more than US$700-million, an amount that could leap if the company’s stock follows the path of numerous other biotech stocks that have gone public on the U.S. exchange this spring and immediately spiked in value – including Repare, whose stock closed more than 50 per cent above its issue price on its first day of trading a week ago.

It also represents a windfall for the Canada Pension Plan Investment Board, which invested US$20-million this year for 2.47 million shares. At the issue price, CPPIB has more than doubled the value of its investment. Other early Canadian investors that stand to benefit include Toronto venture capital firm Genesys Capital and the Fight Against Cancer Innovation Trust, a body mandated to commercialize breakthrough research from the publicly funded Ontario Institute for Cancer Research.

Fusion said Monday it planned to sell 8.35 million shares at US$14 to US$16 apiece, plus an option for its four U.S. underwriters to buy 1.25 million more at the issue price. On Wednesday, it increased the number of shares it planned to sell by about 50 per cent.

This has been a strong quarter for biotechnology IPOs amid heightened investor interest for drug developers seen as immune from the impact of the COVID-19 pandemic, investment bank Renaissance Capital said in a report Wednesday. During the second quarter “nearly every IPO upsized or priced above the midpoint” of their target range and IPOs jumped in price by 39 per cent on average from their issue price, said Renaissance, which tracks IPO activity.

Fusion is one of several “precision oncology” startups that take a new approach to fighting cancer, with more targeted treatments than traditional approaches. Fusion acquires antibodies from other drug companies, then links them to radioactive particles to kill cancer cells.

It is conducting its first human trials for its lead product. Fusion was spun out in 2017 from McMaster University’s Centre for Probe Development and Commercialization, and is led by CPDC founder John Valliant.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies