Six healthcare companies shrugged off the stock market chaos and filed for initial public offerings last week, totally $481 million. Who cares about trade wars and Fed policy when, as a health-sector business, you’re enjoying the inelastic demand for health care, especially as boomers like me are flocking to hospital ERs in increasing numbers with a plethora of serious (and *really* expensive) medical conditions? We want the best treatment now, and we don’t want to have to pay for it!
Well, we’ll pay for some of it, perhaps. But I digress. Here are the 6 new filings tossed into the ring, setting up a healthy post-Labor Day deal calendar as the new-funding rain dance continues:
1) TFF Pharmaceuticals Inc., an early-stage biotech developing dry-powder therapies for lung diseases, registered up to $22 million worth of common stock. The company plans to offer 4.4 million shares at a price of $5. At that price, TFF Pharmaceuticals would command a fully diluted market value of $97 million.
The Austin, TX-based biopharmaceutical firm develops medicines based on its Thin Film Freezing (TFF) platform which, it says, improves the solubility of poorly water-soluble drugs. Pipeline candidates include TFF Vori, an inhaled dry powder drug for invasive pulmonary aspergillosis and TFF Tac-Lac, an inhaled dry powder formulation of the immunosuppressive med tacrolimus (marketed in injectable and oral formulations as PROGRAF by Astellas Pharma). TFF Pharmaceuticals was incorporated in 2018 and plans to list on the Nasdaq under the symbol “TFFP.” National Securities is the sole bookrunner on the deal.
2) Elsewhere, IGM Biosciences Inc., an early-stage biotech developing antibody therapies for cancer, registered up to $100 million worth of common in an IPO. The biotech develops engineered IgM antibodies for the treatment of cancer that it says bind more strongly to cancer cells than commonly used IgG antibodies. In response to a new (acute phase) infection, the body forms IgM antibodies first, followed by IgG antibodies which are more abundant and provide long-term immunity. Lead candidate is Phase 1-stage IGM-2323, a bispecific (binds to two targets) T cell-engaging IgM antibody that binds to cancer cell surface proteins CD20 and CD3 for the potential treatment of B cell non-Hodgkin lymphoma.
The Mountain View, CA-based company was founded in 1993 and plans to list on the Nasdaq under the symbol “IGMS.” Jefferies, Piper Jaffray, Stifel and Guggenheim Securities are the joint bookrunners on the deal. No pricing terms were disclosed.
3) 10x Genomics Inc., which makes instruments and other technology for analyzing biological information, registered up to $100 million worth of common in an IPO. The life sciences tech firm develops instruments, consumables and software for analyzing biological systems that it says enable researchers to interrogate these systems at previously inaccessible resolution and scale. According to its SEC Form-1, 10x Genomics has sold 1,284 instruments to researchers around the world, including 93 of the top 100 global research institutions by publications, and 13 of the top 15 global pharmaceutical companies by 2018 revenue.
The Pleasanton, CA-based company was founded in 2012 and booked $197 million in sales for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol “TXG.” 10x Genomics filed confidentially on May 10, 2019. J.P. Morgan, Goldman Sachs, BofA Merrill Lynch and Cowen are the joint bookrunners on the deal. No pricing terms were disclosed.
4) SpringWorks Therapeutics Inc., a clinical-stage biotech developing small molecule therapies for rare cancers, registered up to $115 million worth of common in an initial public offering. SpringWorks’ lead product candidate, nirogacestat, is an oral, small-molecule gamma secretase inhibitor, initially in development for the treatment of desmoid tumors, a rare soft tissue tumor, for which there are currently no FDA-approved therapies. Nirogacestat was granted both Orphan Drug Designation and Fast Track Designation in August 2017, and a Phase 3 clinical trial was initiated in May 2019.
The Stamford, CT-based company was founded in 2017 and plans to list on the Nasdaq under the symbol “SWTX.” SpringWorks Therapeutics filed confidentially on June 7, 2019. J.P. Morgan, Goldman Sachs and Cowen are the joint bookrunners on the deal. No pricing terms were disclosed.
5) Satsuma Pharmaceuticals Inc., a clinical-stage biotech developing a therapy for migraines, registered up to $86 million worth of common in an IPO. Satsuma’s lead product candidate, STS101, is a drug-device combination of a powder form of dihydroergotamine mesylate that can be self-administered with a pre-filled, single-use, nasal delivery device. In July 2019, the company initiated a Phase 3 trial of STS101 and expects to report topline data in the second half of 2020.
The South San Francisco, CA-based company was founded in 2016 and plans to list on the Nasdaq under the symbol “STSA.” Satsuma Pharmaceuticals filed confidentially on June 21, 2019. Credit Suisse, SVB Leerink and Evercore ISI are the joint bookrunners on the deal. No pricing terms were disclosed.
6) And Exagen Inc., which sells diagnostic blood tests that detect lupus and rheumatoid arthritis, revived its plans to go public by filing an S-1 on Friday with the SEC. The company now plans to raise $58 million in an initial public offering. In its latest filing, the company provided updated financials; updated its underwriters, replacing SVB Leerink and Baird with Cowen and Cantor Fitzgerald; and changed its proposed ticker to “XGN.” The company last filed in February 2016. Exagen bills itself as “a commercial-stage diagnostics company committed to addressing the significant unmet need for the accurate diagnosis and monitoring of patients affected by autoimmune rheumatic diseases. These chronic diseases can cause lifelong inflammation in the joints, tissues and internal organs, resulting in serious complications, such as irreversible organ damage.”
The Vista, CA-based company was founded in 2002 and booked $38 million in sales for the 12 months ended June 30, 2019. No pricing terms for the deal were disclosed.