- Firebrick Pharma has debuted on the ASX – launching 125% on open to trade at 45 cents
- The company is developing Nasodine Nasal Spray – designed to treat viruses such as the common cold
- During its IPO, the company offered shares for 20 cents apiece
The company's stock hit the market at 12:30 pm AEDT on Friday and quickly surged to a high of 53.5 cents.
At the time of writing, the Firebrick Pharma share price is 53 cents, 165% higher than its offer price.
For context, Firebrick Pharma's prospectus offered its shares for just 20 cents apiece.
Let's take a look at what the company does and all the details of its ASX IPO.
But first, what is Firebrick Pharma?
Firebrick Pharma is a pharmaceutical development firm focused on its patented Nasodine – a nasal spray designed to help treat viruses such as the common cold.
The product has been under development for nearly 10 years. It uses povidone-iodine (0.5%) as the active ingredient – the same active ingredient found in Betadine.
A quick fun fact: The name Firebrick is the hexadecimal colour of povidone-iodine.
Nasodine has undergone 3 human trials and Firebrick expects one more phase 3 clinical trial will be enough to see it approved as a treatment for the common cold in adults. That (potential) final trial will go ahead this year.
If all goes to plan, the product will then be sent to regulators for approval in Australia, the United Kingdom, and Europe.
The nasal spray is also expected to be put to the test against COVID-19 in a phase 2 clinical trial in 2022. The company hopes that the trial will show the product can reduce shedding of the COVID-19 virus.
Its co-founders and leaders, Dr Stephen Goodall and Dr Peter Molloy have previously been involved in the leadership of multiple ASX-listed biopharmaceutical companies.
Goodall is Firebrick's chief operating officer while Molloy is its chair.
Molloy also used to be responsible for the Betadine range in Australia, helped launch Betadine Sore Throat Gargle, and previously was CEO of Race Oncology Ltd (ASX: RAC).
What you need to know about Firebrick Pharma's ASX IPO
The ASX has warmly welcomed Firebrick Pharma following its IPO.
Under its prospectus, it sold 35 million shares for 20 cents apiece, raising $7 million. That saw its IPO offer fully subscribed. The funds will go towards ongoing clinical trials, marketing, and operating costs.
At its offer price, the company expected to list with a market capitalisation of around $33.8 million.
However, at its opening price, it had a valuation of approximately $76 million.