Alzheimer's disease drug developer Axovant rises after IPO prices above estimates at $315M

MarketsAssociated Press

Shares of Axovant Sciences are surging after the Alzheimer's disease drug developer said its initial public offering raised $315 million, more than Axovant had expected.

The Bermuda-based company expanded its offering to 21 million shares and said the offering priced at $15 a share, at the high end of its estimates.

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The stock advanced $11, or 73 percent, to $26 in morning trading.

The offering values Axovant at around $1.4 billion.

Axovant Sciences Ltd. is preparing to start late-stage testing of a once-per-day Alzheimer's disease drug called RVT-101. If the studies are successful the company plans to study the drug as a treatment for other types of dementia.

Shares are trading on the New York Stock Exchange under the symbol "AXON."