Oyster Point Pharma (NASDAQ:OYST) priced an initial public offering of five million common shares at a price of $16 each to raise gross proceeds of $80-million. The offering is expected to close on Nov. 4.
The company has given underwriters a 30-day option to purchase up to 750,000 additional shares at the IPO price. J.P. Morgan Securities, Cowen and Co., and Piper Jaffray are acting as joint book-running managers for the offering.
Oyster Point’s lead product candidate, OC-01 is being developed as a nasal spray to treat the signs and symptoms of dry eye disease, a chronic and progressive condition that impacts more than 30 million Americans and is growing in prevalence.
OC-01’s mechanism of action re-establishes tear film homeostasis by activating the trigeminal parasympathetic pathway to stimulate the glands and cells responsible for natural tear film production, known as the lacrimal functional unit.