Health-sector IPO action defies market jitters as Q1 earnings, the Federal Reserve and China trade talks take front stage.

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Undaunted by the crushing weight of uncertainty affecting healthcare stock prices lately, the IPO action in New York continues to race ahead as though determined to prove Hong Kong’s budding IPO scene is just the little league.

Here’s a summary of the SEC- and Wall Street-action the past two weeks:

1) SeqLL Inc., which provides a genetic sequencing platform for researching the makeup of diseases, announced terms for its IPO. The Woburn, MA-based company plans to raise $8 million by offering 1.4 million shares at a price range of $5.40 to $6.40. At the midpoint of the proposed range, SeqLL would command a fully diluted market value of $63 million.

SeqLL bills itself as a life sciences instrumentation and services company focused on providing its “True Single Molecule Sequencing” (tSMS) technology to the scientific and medical community in order to accelerate the understanding of the molecular mechanisms of disease and fundamental biological processes.

SeqLL was founded in 2013 and booked $1 million in sales for the 12 months ended December 31, 2018. It plans to list on the Nasdaq under the symbol “SQL.” WallachBeth Capital is the sole bookrunner on the deal.

2) Elsewhere, Poseida Therapeutics Inc., a Phase 1 biotech developing CAR T-cell therapies for multiple myeloma and prostate cancer, withdrew its plans for an initial public offering. It originally filed in January 2019 with a proposed deal size of $115 million. The company announced that it had raised $142 million in a Series C round led by Swiss-based Novartis AG. Poseida’s lead program is P-BCMA-101 for multiple myeloma. If a pivotal Phase 2 study is successful, it expects to file a US marketing application by late 2020.

The San Diego, CA-based company was founded in 2014 and had planned to list on the Nasdaq under the symbol “PSTX.” Citi, Credit Suisse and Wells Fargo Securities were set to be the joint bookrunners on the deal.

3) Trevi Therapeutics Inc., which is developing an extended-release version of an opioid, nalbuphine ER, for various new indications, announced terms for its IPO. The New Haven, CT-based company plans to raise $70 million by offering 4.67 million shares at a price range of $14 to $16. Insiders intend to purchase $28 million worth of shares in the offering (40% of the deal).

At the midpoint of the proposed range, Trevi would command a fully diluted market value of $243 million. The eight-year-old company says it will use proceeds from the sale to pay for late-stage trials of its drug for severe chronic itching. It is also developing a new version of nalbuphine ER, which is not considered a controlled substance.

Trevi was founded in 2011 and plans to list on the Nasdaq under the symbol “TRVI.” SVB Leerink, Stifel and BMO Capital Markets are the joint bookrunners on the deal. It is expected to price this week.

4) Included among recent SEC offerings for initial public offerings, KCI Holdings Inc., an LBO’d provider of advanced wound care systems and tissue implants, registered up to $500 million worth of common stock. Its mission is to improve patients’ lives and change the clinical practice of medicine with solutions that speed healing, reduce complications, create economic value and promote ease-of-use for clinicians.

The San Antonio, TX-based company was founded in 1976 and booked $1.5 billion in sales for the 12 months ended December 31, 2018. It plans to list on the NYSE under the symbol “KCIH.RC.” J.P. Morgan, Goldman Sachs and BofA Merrill Lynch are the joint bookrunners on the deal. No pricing terms were disclosed.

5) The week of April 15, Hookipa Pharma AG, a Phase 2 biotech developing T cell immunotherapies for cancer and infectious diseases, raised $84 million by offering 6 million shares at $14, the low end of the range of $14 to $16. It had previously filed to offer 6.7 million shares in the same range. Hookipa’s tech plat­form is based on en­gi­neer­ing are­naviruses to carry and de­liver dis­ease-spe­cific pro­teins (anti­gens) di­rectly into pa­tients to den­dritic cells. The im­mune sys­tem de­tects these anti­gens and shores up its de­fenses to tar­get them, killing any cell that ex­presses them and by in­ac­ti­vat­ing in­fec­tious in­trud­ers.

Vienna, Austria-based Hookipa Pharma lists on the Nasdaq under the symbol “HOOK.” BofA Merrill Lynch, SVB Leerink and RBC Capital Markets acted as lead managers on the deal. Shares closed the week at $14, unchanged from its IPO price.

6) Also the week of April 15, Turning Point Therapeutics Inc., an early-stage biotech developing tyrosine kinase inhibitors for treating cancer, raised $167 million by offering 9.3 million shares at $18, the high end of the range of $16 to $18. Turning Point describes itself as a clinical-stage biopharmaceutical company designing and developing novel small molecule, targeted oncology therapies to address key limitations of existing therapies and improve the lives of patients.

San Diego-based Turning Point lists on the Nasdaq under the symbol “TPTX.” Goldman Sachs, SVB Leerink and Wells Fargo Securities acted as lead managers on the deal. Shares closed up 74% from its IPO price at $31.28.

7) On April 16, Brainsway Ltd., which sells medical devices that use magnetic stimulation to treat depression and OCD, raised $28 million by offering 2.5 million ADSs at $11. Brainsway commands a market cap of $119 million. The company had previously filed to raise $30 million by offering 2.5 million ADSs at $11.94.

Brainsway calls itself a commercial stage medical device company focused on the development and sale of non-invasive neuromodulation products using its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology for the treatment of major depressive disorder (MDD) and obsessive-compulsive disorder (OCD), for which it has received marketing authorization from the FDA.

Jerusalem, Israel-based Brainsway lists on the Nasdaq under the symbol “BWAY.” Cantor Fitzgerald, Raymond James and Oppenheimer & Co. acted as lead managers on the deal. Shares closed the week up one cent from its IPO price at $11.01.

8) Cortexyme Inc. registered up to $86 million worth of common stock in an IPO. The South San Francisco, CA-based biopharmaceutical firm believes it has a novel disease-modifying therapeutic approach to treat Alzheimer’s and other neurodegenerative disorders. It says a bacterium called Porphyromonas gingivalis (P. gingivalis) and its secreted gingipains (toxic virulence factor proteases) are present in 90% of the brains of Alzheimer’s patients, adding that P. gigingivalis infection causes Alzheimer’s pathology in animal models.

Lead candidate COR388 is a brain-penetrating small molecule gingipain inhibitor which has shown a favorable safety profile in early-stage studies. A Phase 2/3 trial, GAIN, should launch this quarter with topline data expected in late 2021. The company plans to list on the Nasdaq under the symbol “CRTX.”

9) And Milestone Pharmaceuticals Inc. (MIST) registered up to $86 million worth of common stock. The Montreal-based biopharmaceutical firm focuses its efforts on one compound, etripamil, a short-acting calcium channel blocker being developed as a nasal spray for the treatment a type of rapid heart rate called paroxysmal supraventricular tachycardia (PSVT). Results from a Phase 2 study showed an 87% PSVT termination rate within 15 minutes at the dose selected for further development. A pivotal Phase 3 study is currently recruiting patients with topline data expected in H1 2020. The company plans to list on the Nasdaq under the symbol “MIST.”

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