Dallas, Texas 12/30/2014 (FINANCIALSTRENDS) – Juno Therapeutics Inc (NASDAQ:JUNO) offered 12.7 million shares of common stock in its IPO priced at $24.00 per share. The stock soared 60% on the debut day on December 19, 2014. The Wall Street Journal reported that Juno’s $3 billion market cap was the highest of any biotech company at its debut in at least a decade.
On Monday, the stock gained 11.25% lifting the company’s market capitalization above $4 billion mark. The stock created high of $56.50 before closing at $54.21. This is for the first time stock traded above $50 per share. Volume surge was significant with 9.85 million shares changing hands on Monday compared to its average volume of 2.6 million shares.
IPO and Post-IPO Success
Juno Therapeutics Inc (NASDAQ:JUNO) raised $265 million in its IPO. Post-IPO pop in company’s stock is really a good sign, considering that it has been in existence for little more than a year. The company spun out of Fred Hutchinson Cancer Research Center in 2013 and now Fred Hutch’s 4.6% stake in the company has surged to $216 million in valuation.
Hans Bishop, Juno’s CEO, holds 3% stake in the company. Post-IPO success helped drive the valuation of his holdings above $100 million worth. CL Alaskan LP and JT Line Partners LP jointly holds about 31% stake in the company. The investment worth of this largest shareholder is roughly $1.25 billion.
Juno Therapeutics Inc (NASDAQ:JUNO) has developed a late-stage cancer treatment, which has demonstrated clinically significant patient outcomes. Juno’s IPO success has also revived the life sciences industry in Seattle. Local biotech companies Fred Hutch and Seattle Genetics are hiring, providing considerable career options for Amgen, Inc. (NASDAQ:AMGN) scientists.
Amgen has already announced to shut down its Seattle and Bothell facilities by 2015-end. While the region is definitely a hub for biotech companies, Dendreon Corporation (OTCMKTS:DNDNQ) also filed for bankruptcy protection in November as it struggles to get its drug through the FDA approval process. In such a scenario, Juno’s IPO success is a real toast for the region’s biotech industry.