Shares of Novan, a Durham pharmaceutical start-up, surged again Thursday on the company’s second day of public trading after an IPO.
Novan closed at $21.20, up $3.10 on the day, rising 17 percent.
The shares are now up 93 percent in two days after the company had initially priced its shares at $11, on the low end of its estimate.
Novan shares traded as high as $22.24 Thursday before settling at $21.20 and giving the company a market capitalization of $324.9 million, nearly twice as high as Novan had valued itself Tuesday before the IPO.
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The 63-employee company raised $45 million Wednesday, before fees and commissions, from offering 4.1 million shares to investors; its underwriters have a 30-day option to buy an additional 615,000 shares at the initial public offering price.
Novan is a skin products company with no products on the market. It is developing dermatological products to treat five conditions, including acne, genital warts and toenail fungus.
Launched in 2006 as a spin-out from UNC-Chapel Hill, Novan is backed by prominent corporate executives. Backers include former GlaxoWellcome CEO Robert Ingram, former Goodyear Tire CEO Robert Keegan, and F. Neal Hunter, the former CEO and co-founder of CREE, the Durham LED lighting company.