It did not take long for Kinnate Biopharma (NASDAQ:KNTE) to shoot higher after its initial public offering. In fact, shares were up 115% at one point on Thursday. So what about the Kinnate Biopharma IPO has investors so excited? And what else do you need to know about KNTE stock?
To start, what exactly is Kinnate Biopharma? Well, the company calls San Diego, California its home. There, it works to develop targeted treatments for specific cancers. Essentially, Kinnate Biopharma wants to discover and develop treatments for cancers that thus far have been difficult to treat.
With that in mind, here are 13 other things you need to know about the Kinnate Biopharma IPO and KNTE stock.
- Kinnate Biopharma began trading on the Nasdaq Exchange under the ticker symbol KNTE.
- Its IPO raised $240 million, after the company sold 12 million shares at $20 each.
- Importantly, Kinnate revised the terms of its IPO earlier this week.
- As of Tuesday, the company only planned to offer 10 million shares at a range of $16-$18.
- After it began trading, KNTE stock opened Thursday at $40, double its IPO price.
- Since then, shares hit an intraday high of $43.01.
- As a cancer-fighting company, Kinnate Biopharma specializes in small molecule kinase inhibitors for difficult-to-treat, genomically defined cancers.
- Essentially, Kinnate is hoping to build on a proven method of fighting cancer.
- Right now, its lead candidate is KIN002787.
- Kinnate Biopharma hopes to use this lead candidate to treat lung cancer, melanoma and other solid tumors.
- The company also is evaluating inhibitors for ovarian, prostate and certain types of breast cancer.
- Also importantly, Kinnate Biopharma does not currently generate any revenue.
- According to its IPO prospectus, losses for the first nine months of 2020 grew from $6 million to $22 million.
What You Need to Know About KNTE Stock
The Kinnate Biopharma IPO is not alone in its opening success. Importantly, recent weeks have brought a rush of these hot names, and even more are set to start trading before the end of the year. However, the early success of KNTE stock marks a shift from earlier on in the pandemic.
Earlier in the year, initial public offerings came to a screeching halt. Then, they returned as a trickle, and then as a flood. Since then, investors have been hungry for seemingly every new entrant to the public markets. However, biotech is a sector that has faced many challenges this year, meaning the rebound right now is promising.
Essentially, investors turned all of their attention in the sector to companies producing novel coronavirus treatments and vaccines. Anything else moved out of focus, and even lost funding. Plus, with stay-at-home orders and business closures, many biotech companies were forced to halt their clinical trials and delay progress. Overall, this weighed on many biotech stocks.
Now though, it looks like investors are ready to move on and chase KNTE stock up more than 100%. Whether or not this success will continue remains to be seen. As a pre-revenue company with a lot to prove, the Kinnate Biopharma IPO is one to watch. However, investors should definitely pay attention as the world of biotech regains its sparkle.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.