ZURICH, June 16 (Reuters) - Shares in Idorsia, the drug pipeline company spun off from biotech group Actelion after Johnson & Johnson’s $30 billion takeover, made their market debut at 10 Swiss francs per share on Friday.
They edged as high as 10.50 in early business.
One trader said the stock had been trading over the counter this week at around 8 francs, the theoretical price given the difference between Actelion’s share price in Swiss francs and the $280 cash price J&J is paying for Actelion.
“I think 10 francs will be paid today, which reflects the company’s cash and actually is rather cheap,” the trader added.
The company is starting out with around $1 billion in cash.
Idorsia, run by Actelion co-founder Jean-Paul Clozel, specialises in the discovery and development of small molecules to treat central nervous system, cardiovascular and immunological disorders as well as orphan diseases.
Actelion shareholders are getting one Idorsia share for each Actelion share held on June 13.
J&J, which will control up to 32 percent of Idorsia, intends to delist Actelion.
Reporting by Michael Shields and Rupert Pretterklieber; Editing by Joshua Franklin