Healthcare IPOs still on a tear as pricings and registrations keep Wall Street, SEC on their toes.

freeGraphicToday / Pixabay

Despite President Trump’s threatening trade Tweets to China and the resulting drag on stocks, only the health sector came out ahead on Monday (May 6, 2019), and the IPO action continues to rage furiously for another week.

Here’s a summary of the action the last six days as of close Monday, May 6. Over that period, by my count:

  • 1 pricing of $91M
  • 5 new registrations, totaling $380M
  • 6 IPOs set to price this week, totaling $415M
  • 1 humongous IPO set to price next week, totaling $3B

Here they are in chronological order:

 1) TransMedics Group Inc., a medical device company that provides a system for donor organ transport, raised $91 million by offering 5.7 million shares at $16, the midpoint of the $15 to $17 range. TransMedics bills itself as a commercial-stage medical technology company transforming organ transplant therapy for end-stage organ failure patients across multiple disease states.

It developed the Organ Care System (OCS) to replace a decades-old standard of care that it believes replicates many aspects of the organ’s natural living and functioning environment outside of the human body. Andover, MA-based TransMedics lists on the Nasdaq under the symbol “TMDX.” Morgan Stanley and J.P. Morgan acted as lead managers on the deal. On Monday, May 6, shares closed at $24.80, up 71% from their IPO price.

2) Elsewhere, BioVie Inc., an early stage biotech developing therapies for liver cirrhosis, registered up to $23 million worth of common stock in a Nasdaq uplisting. The company is currently listed on the OTCQB under the ticker BIVI. BioVie’s initial disease target is ascites, a serious medical condition affecting about 100,000 Americans and many times more worldwide.

Its therapeutic product candidate BIV201 is based on a drug that is approved in about 40 countries to treat related complications of liver cirrhosis (part of the same disease pathway as ascites), but not yet available in the US. The Los Angeles, CA-based company was founded in 2013 and plans to list on the Nasdaq under the symbol “BIVI.” ThinkEquity is the sole bookrunner on the deal. No pricing terms were disclosed.

3) Axcella Health Inc., which is developing therapeutics and dietary products for amino acid dysregulation, announced terms for its IPO. The Cambridge, MA-based company plans to raise $75 million by offering 3.6 million shares at a price range of $20 to $22. At the midpoint of the proposed range, Axcella Health would command a fully diluted market value of $546 million. Axcella’s “AXA” candidates are generated from its proprietary, human-focused AXA development platform and harness the power of EMMs, a broad family of molecules that fundamentally impact and regulate human metabolism.

Axcella Health was founded in 2008 and plans to list on the Nasdaq under the symbol “AXLA.” Goldman Sachs, J.P. Morgan and SVB Leerink are the joint bookrunners on the deal. It is expected to price this week.

4) Codiak BioSciences Inc., an early-stage biotech developing exosome therapeutics for various diseases, filed with the SEC to raise up to $86 million in an initial public offering. Codiak BioSciences is harnessing exosomes–natural intercellular messengers–to pioneer a new class of biologic medicines, exosome therapeutics. It says exosomes are ideal solutions for a broad range of allogeneic (genetically similar, different donor) therapies since exosomes are inherently non-immunogenic (do not induce an immune response). Its first candidates, exoSTING and exoIL-12, are in the therapeutic areas of immuno-oncology and infectious diseases.

The Cambridge, MA-based company was founded in 2015 and plans to list on the Nasdaq under the symbol “CDAK.” Jefferies, Evercore ISI and William Blair are the joint bookrunners on the deal. No pricing terms were disclosed.

5) IDEAYA Biosciences Inc., a Phase 1 biotech developing targeted therapies for genetically-defined cancers, filed with the SEC to raise up to $70 million in IPO. IDEAYA is focused on two areas of precision medicine, direct targeting of oncogenic pathways and synthetic lethality. IDEAYA has an exclusive, worldwide license from Novartis for lead candidate IDE196, a protein kinase C (PKC) inhibitor for cancers having GNAQ or GNA11 gene mutations. Novartis is currently studying IDE196 in a Phase 1 trial for metastatic uveal melanoma, but IDEAYA has the right to all other clinical development and commercial rights.

The South San Francisco, CA-based company was founded in 2015 and plans to list on the Nasdaq under the symbol “IDYA.” J.P. Morgan, Citi and Jefferies are the joint bookrunners on the deal. No pricing terms were disclosed.

6) Applied Therapeutics Inc., a Phase 2 biotech developing therapies for diabetic cardiomyopathy, announced terms for its IPO. The New York-based biotech will advance three drugs that target aldose reductase, an enzyme that converts glucose into sorbitol, a sugar alcohol involved in multiple diseases including complications of diabetes.

Previous efforts to block aldose reductase have had limited success as they have not been selective or specific enough, Applied Therapeutics said in an SEC filing. The company has designed its drugs to overcome these challenges. The NYC-based company plans to raise $60 million by offering 4 million shares at a price range of $14 to $16. At the midpoint of the proposed range, Applied Therapeutics would command a fully diluted market value of $292 million.

Applied Therapeutics was founded in 2016 and plans to list on the Nasdaq under the symbol “APLT.” Citi, Cowen and UBS Investment Bank are the joint bookrunners on the deal. It is expected to price this week.

7) NextCure Inc., a clinical-stage biotech developing cancer immunotherapies, announced terms for its IPO. The Beltsville, MD-based company plans to raise $75 million by offering 5 million shares at a price range of $14 to $16. At the midpoint of the proposed range, NextCure would command a fully diluted market value of $350 million. Eli Lilly-partnered NextCure has already raised $180 million in venture capital to go after PD-L1 negative tumors where existing checkpoint inhibitors are impotent. NextCure was founded in 2015 and plans to list on the Nasdaq under the symbol “NXTC.” Morgan Stanley, BofA Merrill Lynch and Piper Jaffray are the joint bookrunners on the deal. It is expected to price this week.

8) Milestone Pharmaceuticals Inc., a Phase 3 biotech developing therapies for heart rate conditions, announced terms for its IPO. The Montreal-based biopharmaceutical firm plans to raise $75 million by offering 5 million shares at a price range of $14 to $16. Milestone 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.

Milestone was founded in 2003 and plans to list on the Nasdaq under the symbol “MIST.” Jefferies, Cowen and Piper Jaffray are the joint bookrunners on the deal. It is expected to price this week.

9) Cortexyme Inc., which is developing a novel therapy for Alzheimer’s disease and other neurodegenerative disorders, announced terms for its IPO. The South San Francisco, CA-based biopharmaceutical firm plans to raise ~$75 million by offering 4.4 million shares at a price range of $16 to $18.

Cortexyme 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.

Cortexyme was founded in 2012 and plans to list on the Nasdaq under the symbol “CRTX.” BofA Merrill Lynch and Credit Suisse are the joint bookrunners on the deal. It is expected to price this week.

10) Bicycle Therapeutics Ltd. has filed a preliminary prospectus for an IPO of up to $86 million. The Cambridge, UK-based biopharmaceutical firm develops engineered synthetic peptides constrained to form two loops that it calls Bicycles, a configuration that it says creates high affinity and selectivity, allowing previously undruggable targets to be drugged. Lead candidate is BT1718, a Bicycle Toxin Conjugate, for the treatment of Membrane Type 1 matrix metalloprotease-expressing tumors. Interim data from a Phase 1 trial should be available in H2. Bicycle Therapeutics plans to list on the Nasdaq under the symbol “BCYC.”

11) Peloton Therapeutics Inc. has filed a preliminary prospectus for an IPO of $115 million. The Dallas, TX-based biopharmaceutical firm develops treatments for cancer and other life-threatening conditions that target a transcription factor called HIF-2α, previously considered an undruggable target with a small molecule. Lead candidate is PT2977 for renal cell carcinoma (RCC). Enrollment in a Phase 3 clinical trial should commence in H2. It is also in Phase 2 development for an inherited disorder called von Hippel-Lindau disease associated RCC. Peloton plans to list on the Nasdaq under the symbol “PLTX.”

12) Avantor Inc., an LBO’d provider of laboratory supplies and services, announced terms for its IPO on Friday. The Radnor, PA-based company plans to raise $3.0 billion by offering 154 million shares at a price range of $18 to $21. Avantor bills itself as a leading global provider of products and services to customers in the biopharma, healthcare, education and government industries, among others.

Its offerings include materials and consumables, equipment and instrumentation and services and specialty procurement. Avantor was founded in 1904 and booked $5.9 billion in sales for the 12 months ended March 31, 2019. It plans to list on the NYSE under the symbol “AVTR.” Goldman Sachs, J.P. Morgan, BofA Merrill Lynch, Barclays and Jefferies are the lead bookrunners on the deal. The IPO is expected to price during the week of May 13, 2019.

 13) And Trevi Therapeutics Inc., which is developing an extended-release version of an opioid for new indications, on Monday (May 6) lowered the proposed deal size for its upcoming IPO. The New Haven, CT-based company now plans to raise $55 million by offering 5.5 million shares at a price of $10. Insiders now intend to purchase $30 million worth of shares in the offering (55% of the deal). The company had previously filed to offer 4.7 million shares at a range of $14 to $16. At the midpoint of the revised range, Trevi Therapeutics will raise 21% less in proceeds than previously anticipated.

Trevi Therapeutics 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.

——–

Whew! That’s a six-day total IPO calendar of pricings, filings and terms announcements of ~$3.89 billion. Now that’s what I call an IPO raindance!

Print Friendly, PDF & Email