July’s IPO action in health sector foreshadows record month of pricings.

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The second week of July continued the stampede among healthcare startups and seasoned players in search of new funding from Wall Street and, in one case, the Hong Kong exchange. Here’s a look at the action the week of July 8, 2019:

1) Included among recent SEC filings for initial public offerings, RAPT Therapeutics Inc., a Phase 1 biotech developing therapies for cancer and inflammatory diseases, registered up to $86 million worth of common stock. The South San Francisco-based biopharma firm develops small molecule therapies for cancer and inflammatory disorders that it says modulate the critical immune responses underlying the diseases. Lead oncology candidate is FLX475, a CCR4 antagonist that blocks the migration of immunosuppressive regulatory T cells into tumors. Proof-of-concept data should be available in H1 2020. Lead inflammation candidate is RPT193, also a CCR4 antagonist, that blocks the recruitment of inflammatory immune cells called type 2 T helper cells that play a key role in allergic inflammatory diseases. A Phase 1 study in atopic dermatitis should launch in H2. The company was founded in 2015 and it plans to list on the Nasdaq under the symbol “RAPT.” BofA Merrill Lynch, Wells Fargo Securities, BMO Capital Markets and UBS Investment Bank are the joint bookrunners on the deal. No pricing terms were disclosed.

2) Elsewhere, InMode Ltd., which develops and markets minimally-invasive medical aesthetic products, registered up to $75 million in an initial public offering. The company bills itself as a leading global provider of innovative, energy-based, minimally-invasive surgical aesthetic and medical treatment solutions. It adds that, “Within the global aesthetics market, our products and solutions are primarily designed to address three energy-based treatment categories comprised of face and body contouring; medical aesthetics; and women’s health.” The Yokneam, Israel-based company was founded in 2008 and booked $110 million in sales for the 12 months ended March 31, 2019. It plans to list on the Nasdaq under the symbol “INMD.” Barclays and UBS Investment Bank are the joint bookrunners on the deal. No pricing terms were disclosed.

3) BioVie Inc., an early-stage biotech developing therapies for cirrhosis, announced terms for its IPO. The Los Angeles-based company plans to offer 1.3 million shares and raise $15 million based on an offer price of $11.88, the as-converted last close of its shares listed on the OTC (BIVI). At this price, BioVie would command a fully diluted market value of $64 million. BioVie says, “We are a clinical stage biotechnology company engaged in the discovery, development and commercialization of therapies targeting life-threatening complications of liver cirrhosis. Our initial disease target is ascites, a serious medical condition affecting about 100,000 Americans and many times more worldwide. Our 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.” BioVie was founded in 2013 and plans to list on the Nasdaq under the symbol “BIVI.” ThinkEquity is the sole bookrunner on the deal.

4) Afya Ltd., a Brazilian for-profit medical and healthcare education group, announced terms for its IPO. The Nova Lima-based company plans to raise $234 million by offering 13.7 million shares (14% insider) at a price range of $16 to $18. At the midpoint of the proposed range, Afya would command a market value of $1.5 billion. Afya says, “We are the leading medical education group in Brazil based on the number of medical school seats, as published by the Brazilian Ministry of Education as of December 31, 2018, delivering an end-to-end physician-centric ecosystem that serves and empowers students to be lifelong medical learners from the moment they join us as medical students through their medical residency preparation, graduation program, and continuing medical education activities.” Afya was founded in 1999 and booked $109 million in revenue for the 12 months ended March 31, 2019. It plans to list on the Nasdaq under the symbol “AFYA.” BofA Merrill Lynch, Goldman Sachs, UBS Investment Bank, Itau BBA, Morgan Stanley, BTG Pactual and XP Investimentos are the joint bookrunners on the deal. It is expected to price this week.

5) Genmab A/S, which is developing novel antibodies for cancer and other diseases, announced terms for its IPO. The Copenhagen-based company plans to raise $503 million by offering 27.8 million ADSs at a price of $18.11, the as-converted closing price of its shares on the Nasdaq Copenhagen on July 5, where it has been listed since 2000 (GEN). At $18.11 per ADS, Genmab would command a fully diluted market value of $11.8 billion. By market cap, Genmab is the largest biotech to list in the US in over 20 years. Genmab and their longtime partners at J&J have been steadily expanding the reach of their leading CD38 drug Darzalex, which may soon face competition from Sanofi. In the meantime, they have some next-gen programs in mind to maintain the franchise for the long term. Genmab was founded in 1998 and booked $441 million in revenue for the 12 months ended March 31, 2019. It plans to list on the Nasdaq under the symbol “GMAB.” BofA Merrill Lynch, Morgan Stanley and Jefferies are the joint bookrunners on the deal. It is expected to price this week.

6) Fulcrum Therapeutics Inc., a Phase 1 biotech developing therapies based on gene regulation for rare diseases, announced terms for its IPO. The Cambridge, MA-based company plans to raise $77 million by offering 4.5 million shares at a price range of $16 to $18. At the midpoint of the proposed range, Fulcrum Therapeutics would command a fully diluted market value of $411 million. The biopharmaceutical firm develops therapies for rare diseases via its proprietary product engine enabling it to identify the source causes of an inherited disorder of the muscles of the face, shoulder blades and upper arms called facioscapulohumeral muscular dystrophy (FSHD) and certain blood disorders like sickle cell disease and beta-thalassemia. A Phase 2b study evaluating its candidate for FSHD, losmapimod, should start shortly. It expects to file an IND for its candidate in blood disorders, FTX-HbF, by mid-2020. Fulcrum Therapeutics was founded in 2015 and it plans to list on the Nasdaq under the symbol “FULC.” Morgan Stanley, BofA Merrill Lynch and SVB Leerink are the joint bookrunners on the deal. It is expected to price this week.

7) France’s Biophytis SA (Paris) amended its registration from earlier last week, now saying it will now offer 15M shares (including 10M ordinary shares in the form of American Depositary Shares) through H.C. Wainwright. That’s up from 13.125M ordinary shares, 8.75M of those in the form of ADS. It still expects to price the offering at $7-$9/ADS (about €0.62-€0.80 per ordinary share). The proposed maximum aggregate offering price, estimated solely for the purpose of computing the amount of the registration fee, is about $13.82 million. The company expects to use the funding to advance its Phase 2b clinical trial of Sarconeos (BIO101) in sarcopenia–the age-related loss of muscle mass and strength. Biophytis also plans to continue its development of BIO101 in Duchenne Muscular Dystrophy through submission of an IND application to the FDA and clinical trial applications to the regulatory agencies in Europe. Furthermore, the US-French company aims to continue building its preclinical research and development platform on retinopathies and for other new and on-going research and development activities. The clinical-stage biotech company plans to trade under the symbol “BPTS.”

8) Health Catalyst Inc., which provides a data analytics platform and services to healthcare organizations, announced terms for its IPO on Friday. The Salt Lake City, UT-based company plans to raise $129 million by offering 6 million shares at a price range of $20 to $23. At the midpoint of the proposed range, Health Catalyst would command a fully diluted market value of $826 million. More than 500 hospitals and an estimated 5,000 clinics use Health Catalyst software, which extracts data from patient medical and genetic records, lab results, billing systems and customer surveys for analysis, the WSJ reports. The company presents the health information in a user-friendly format, and Health Catalyst developers collect data from various hospitals to establish algorithms that can assist hospitals in identifying inefficiencies or enhance medical care. Health Catalyst was founded in 2008 and booked $127 million in sales for the 12 months ended March 31, 2019. It plans to list on the Nasdaq under the symbol “HCAT.” Goldman Sachs, J.P. Morgan and William Blair are the joint bookrunners on the deal. It is expected to price during the week of July 22, 2019.

9) Peloton Therapeutics Inc., a Phase 2 biotech developing small-molecule HIF-2a inhibitors for kidney cancer, officially withdrew its plans for an initial public offering. In May of this year, Peloton announced that it would be acquired by Merck for $1.05 billion in cash, plus up to $1.15 billion in milestone payments; the announcement came one day before it was scheduled to price. It had originally filed to raise $150 million for a fully-diluted market cap of $742 million. The Dallas, TX-based company was founded in 2010 and had planned to list on the Nasdaq under the symbol “PLTX.” J.P. Morgan, Citi and Jefferies were set to be the joint bookrunners on the deal.

10) And Hong Kong-based antibody maker SinaMab Biosciences Ltd. (Shatin) has filed for an IPO on the HKEX, marking the first truly homegrown company to take advantage of new rules that allow pre-revenue biotechs to list on the stock exchange, says Endpoints. Founder and CEO Shawn Leung calls SinoMab “an industry pioneer in the region,” having started out in 2002 with support from Morningside–at a time the city’s leaders appeared more interested in “rationalization” of Chinese medicine. Leung, an Oxford-educated local who trained in the US first as a postdoc then at Immunomedics, came up with his own framework for humanizing antibodies. That formed the basis of SinoMab’s current pipeline, which comprises a lead anti-CD22 drug, a BTK inhibitor, and four other preclinical mAbs. With SM03, SinoMab is targeting some of the biggest indications in immunology: rheumatoid arthritis (Phase 3), systemic lupus erythematosus (Phase 1) and Sjögren’s syndrome (IND), in addition to non-Hodgkin’s lymphoma (Phase 2).

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