Shares of Amicus Therapeutics Inc. rose to the highest price in almost seven years after the company raised $225 million in gross proceeds from a share sale.
The shares rose as high 8.7 percent to $14.44 on Friday after pricing an offering of 17 million shares at $13.25 a share. The company had said earlier this week it expected to raise $150 million. The funds will be invested in the company’s Galafold medication, otherwise known as migalastat, used to treat Fabry disease.
Amicus, with a $1.59 billion market value, manufactures drugs that treat human genetic diseases, including Fabry, Gaucher and Pompe disease. Fabry disease, which affects about 1 in 40,000 to 60,000 males, can produce pain, gastrointestinal problems and hearing loss, and in some cases can lead to kidney damage, heart attack and stroke, according to the U.S. National Institutes of Health.
In March, Cranbury, New Jersey-based Amicus reached an agreement with the U.S. Food and Drug Administration on the approval process for migalastat, including how clinical studies would be evaluated. Amicus plans to submit its application in the second half of this year.
The FDA meeting showed that Amicus executives are working well with regulators, said Ritu Baral, an analyst at Cowen & Co. “It really gave them an opportunity to communicate what happened and clearly they did it in a highly credible way,” she said.
In 2014, Amicus didn’t report any drug sales and had $1.2 million in revenue related to research. Migalastat will generate $221 million in sales by 2020, according to the average of two analysts’ estimates compiled by Bloomberg.
Amicus shares were up 6.2 percent to $14.11 at 12:37 p.m. in New York. The stock had climbed 60 percent this year through Thursday.