Health-sector IPO action heating up big time after Labor Day pause.

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Health-sector initial public offerings are alive and kicking again, as over $1B was raised last week among just for aspiring players, now taking their chances in the big league stock casinos. The staggering size of last week’s haul is proof–once again–that despite the uncertainty over trade conflicts, monetary policy and now, oil prices, there’s plenty of cash still parked on the sidelines around the world just itching to grab a piece of a new, promising tech upstart.

Here’s a snapshot of the IPO pricing activity in New York and Hong Kong and two new registrations with the SEC, including our weekly SPOTLIGHT candidate:

1) SpringWorks Therapeutics Inc., a Phase 3 biotech developing small molecule therapies for rare cancers, raised $162 million by offering 9.0 million shares at $18, the high end of the range of $16 to $18. 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 filed confidentially on June 7, 2019. SpringWorks lists on the Nasdaq under the symbol “SWTX.” J.P. Morgan, Goldman Sachs and Cowen acted as lead managers on the deal. Shares closed the week up 26% to $22.63. Shares picked up another 5% to $23.73 at close Monday.

2) Elsewhere, 10x Genomics Inc., which provides a single-cell sequencing platform for biomedical research, raised $390 million by offering 10 million shares at $39, above the upwardly revised range of $36 to $38. The company had originally filed to sell 9 million shares at a range of $31 to $35. At the IPO price, the company commands a fully diluted market value of $4.2 billion. 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. It has sold 1,284 instruments to date, including 93 of the top 100 global research institutions and 13 of the top 15 pharmaceutical companies.

The Pleasanton, CA-based company was founded in 2012 and booked $197 million in sales for the 12 months ended June 30, 2019. It lists on the Nasdaq under the symbol “TXG.” 10x Genomics filed confidentially on May 10, 2019. J.P. Morgan, Goldman Sachs and BofA Merrill Lynch acted as lead managers on the deal. Shares closed the week up 34% to $52.27. Shares closed up another 6% to $55.20 at close Monday.

3) Satsuma Pharmaceuticals Inc., which is developing a fast-acting dry powder nasal spray for migraines, raised $83 million by offering 5.5 million shares at $15, the midpoint of the $14 to $16 range.

The South San Francisco, CA-based company originally planned to raise $75 million by offering 5 million. At $15 per share, Satsuma commands a fully diluted market value of $262 million. Its lead product candidate, STS101, is a drug-device combination of a proprietary dry-powder formulation of dihydroergotamine mesylate, or DHE, which can be quickly and easily self-administered with a proprietary pre-filled, single-use, nasal delivery device. Satsuma Pharmaceuticals was founded in 2016 and lists on the Nasdaq under the symbol “STSA.” Credit Suisse, SVB Leerink and Evercore ISI acted as lead managers on the deal. Shares closed the week up 13% to $16.90. Shares gave back 7% Monday, closing at $15.78.

4) Monopar Therapeutics Inc., a Phase 3 biotech developing therapies for cancer and the side effects of chemo, set the pricing terms for its IPO. The company plans to sell 4,444,445 common shares at $8 to $10 each, which would raise $40 million in gross proceeds. The company has three candidates in its pipeline. Its lead product candidate, Validive, is designed to reduce the incidence and effects of severe oral mucositis in patients undergoing chemoradiotherapy for oropharyngeal cancer. The company intends to begin a Phase 3 clinical trial for Validive in the 4Q19.

The Wilmette, IL-based company was founded in 2014 and plans to list on the Nasdaq under the symbol “MNPR.” JonesTrading is the sole bookrunner on the deal.


5) And BioNTech AG has filed with the SEC to raise gross proceeds of up to $100 million from an IPO via ADSs (American Depositary Shares), according to an F-1 registration statement. The firm is developing therapeutics for cancer and other diseases. BioNTech has a large and ambitious pipeline, significant but irregular milestone revenue, and numerous commercial collaborations with major pharma firms in the areas of melanoma and solid tumor treatments, says Seeking Alpha.

The Mainz, Germany-based company was founded in 2008 to develop therapeutics for the treatment of various cancers through the use of mRNA-based drugs, chimeric antigen receptor T-cells, checkpoint immunomodulators, as well as targeted cancer antibodies and small-molecule drugs.

Management is headed by Co-Founder and CEO Ugur Sahin, who previously served as the head of the Scientific Advisory Board of Ganymed Pharmaceuticals. BioNTech’s lead drug candidate BNT111 is an immunotherapy therapeutic that is in Phase 1 clinical trials for patients with advanced melanoma, where management has observed a response rate of over 90%.

Management hopes to initiate a Phase 2 trial and a registrational, randomized Phase 3 trial of BNT111 in patients with metastatic melanoma in H1 2020. The firm’s secondary drug candidate BNT122 is currently being evaluated in collaboration with Genentech in a Phase 1a/1b trial for the treatment of patients with late stage advanced cancers, including patients that failed multiple lines of prior treatment.

According to a 2017 market research report by Grand View Research, the global melanoma therapeutics market was valued at $4.2 billion in 2016 and is projected to reach $12.4 billion by 2025, growing at a CAGR of 11.2% between 2017 and 2025. The Asia-Pacific region is projected to grow at the fastest rate.

As of June 30, 2019, BioNTech had $315.5 million in cash and $374.2 million in total liabilities (unaudited, interim). The company has not disclosed the timing or pricing terms for the IPO. It hopes to list on the Nasdaq under the symbol “BNTX.” Listed underwriters are J.P. Morgan, BofA Merrill Lynch, UBS Investment Bank, SVB Leerink, Canaccord Genuity, Bryan, Garnier & Co., Berenberg, Wolfe Capital Markets and Advisory, and Kempen Mirae Asset Securities.

6) Across the world, Shanghai Henlius Biotech Inc. started taking investor orders last week for a Hong Kong initial public offering that could raise as much as $477 million, the city’s first major listing since July. The Fosun Group-backed company is offering about 64.7 million shares at HK$49.6 to HK$57.8 each, according terms for the deal obtained by Bloomberg. The share sale could raise as much as $548 million if an over-allotment option is fully exercised, the terms show.

The Shanghai-based biotech company attracted four cornerstone investors to the offering, including Qatar Investment Authority which has agreed to buy $90 million worth of shares, according to the terms. Henlius’s offering will be a test of investor sentiment in Hong Kong as the financial hub comes under the twin pressure of anti-government protests that show no sign of abating and a trade war between the US and China. The biotech company’s share sale is the city’s first IPO of more than $100 million since Jinshang Bank Co.’s $474 million listing in July, data compiled by Bloomberg show.

Hong Kong needs IPO volume to pick up as it’s currently trailing New York and Shanghai in overall funds raised, data compiled by Bloomberg show. Anheuser-Busch InBev NV’s decision in July to postpone the $9.8 billion IPO of its Asian business deprived Hong Kong of what would have been the world’s largest IPO this year. Companies have raised $10.8 billion via first-time share sales in Hong Kong so far this year, less than half the amount in the same period last year. But 2018 was a blockbuster year with the likes of Xiaomi Corp., Meituan Dianping and China Tower Corp., all completing multi-billion dollar listings. Henlius is expected to price the offering on Sept. 18 and list on the Hong Kong stock exchange on Sept. 25, according to the terms.

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