Investors cheered on Tuesday as the stock of newly public FibroBiologics (NASDAQ:FBLG) surged 82% following the company’s release of preclinical data and its announcement of a private placement of 65,447 shares at $15 per share.
Opening at $7.70 and later hitting a high of $15.47, the stock ultimately closed at $13.45, marking an 82% increase from Monday’s closing price, as of 3:25 p.m. ET.
Early Tuesday, FibroBiologics revealed preclinical data for a cell therapy utilizing human dermal fibroblasts as a potential treatment for psoriasis. The data was presented at the 2024 Keystone Symposia for Systemic Autoimmune and Autoinflammatory Diseases.
Late Monday, the company announced in a prospectus filed with the SEC that it had completed a private placement of 65,447 shares priced at $15 per share, resulting in net proceeds of approximately $900K.
FibroBiologics, based in Texas, specializes in the development of fibroblast-based cell therapies. The company’s leading therapy candidate, CYMS101, is currently in Phase 1 development for the treatment of multiple sclerosis.
Historical Context
The surge in FibroBiologics’ stock comes at a time when biotechnology as a sector is experiencing heightened investor interest fueled by advancements in medical research and the potential for groundbreaking treatments. The recent volatility in the stock market has led to an increased appetite for growth opportunities, with biotech companies often at the forefront of such sentiment.
