Novan Inc.’s shares rose more than 60 percent in the first day of trading Wednesday after its initial public offering that raised more than $40 million.

Although 4.1 million shares of Novan were priced Tuesday evening at the low end at $11 per share, the stock closed Wednesday at $18.10, up $7.10 a share, or 64.5 percent.

The late-stage pharmaceutical company based in Durham is focused on dermatology products through therapies using nitric oxide.

The skin products company currently has no products on the market, but it is developing dermatological products to treat five different conditions, including acne, genital warts and toenail fungus.

Novan will use the majority of the $45 million raised in the IPO to finance its leading drug, SB204, that’s currently in Phase 3 clinical testing. The company expects to report clinical trial results early next year.

The company granted the underwriters of the loan a 30-day option to purchase an additional 615,000 shares of common stock.

Also in its pipeline are products SB206 and SB208, and the company plan’s to release results from Phase 2 trials of those drugs in the second half of 2016 and the first half of 2017, respectively.

Novan’s final S-1 can be found here.