Health sector IPOs show no sign of cooling off as “rain dance” continues, and new money keeps showering hopefuls.

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With signs that public support of Medicare for All is slipping, health-sector IPO action was on fire last week and, in general, there could be eight new IPOs priced this week, including fertility benefits provider Progyny (Nasdaq:PGNY), which stands out for its fast growth and profitability.

Here’s the latest action for the week of Oct. 14:

1) Included among recent pricings of initial public offerings, Innate Pharma SA, a commercial-stage biotech developing antibody therapies designed to harness the immune system for cancer, raised $69 million by offering 12.5 million shares at $5.50 (€4.97), a 13% discount to its prior closing price on the Euronext Paris (€5.71; ticker IPH). Innate originally filed to offer 10.7 million shares at $7.50 per share. Marseille-based Innate Pharma plans to list on the Nasdaq under the symbol “IPHA.” Citi, SVB Leerink and Evercore ISI acted as lead managers on the deal. Shares closed the week up 12% at $6.14.

2) Elsewhere, Cabaletta Bio Inc., a Phase 1-ready biotech developing engineered T cells for autoimmune diseases, announced terms for its IPO. The Philadelphia, PA-based company plans to raise $87 million by offering 5.8 million shares at a price range of $14 to $16. At the midpoint of the proposed range, Cabaletta Bio would command a fully diluted market value of $358 million. The biotech develops engineered T cell therapies, chimeric antoantibody receptor (CAAR) T cells, for B cell-mediated autoimmune disorders. Cabaletta Bio was founded in 2017 and plans to list on the Nasdaq under the symbol “CABA.” Morgan Stanley, Cowen and Evercore ISI are the joint bookrunners on the deal. It is expected to price this Thursday, October 24.

3) This week, fertility benefits manager Progyny Inc. plans to raise $150 million at a $1.5 billion market cap. Backed by TPG and Kleiner Perkins, Progyny has over 80 clients, providing coverage to roughly 1.4 million members. The newly-profitable company more than doubled revenue in 2018 to $105 million (18% gross margin), and is on pace to do the same in 2019. The NYC-based company plans to list on the Nasdaq under the symbol “PGNY.”

4) Phase 3 biotech Phathom Pharmaceuticals Inc. also plans to raise $150 million this week to command a $650 million market cap. Formed by Takeda and Frazier, its pipeline contains lead candidate vonoprazan, an oral small molecule therapy being developed for GERD and H. pylori infection, both common GI diseases. The Buffalo Grove, IL-based company plans to list on the Nasdaq under the symbol “PHAT.”

5) TELA Bio Inc., a commercial stage medical technology company focused on tissue reinforcement, filed with the SEC to raise up to $69 million in an initial public offering. The Malvern, PA-based med tech firm develops tissue reinforcement materials, branded as OviTex, used in soft tissue reconstruction, including hernia repair, abdominal wall reconstruction and plastic/reconstruction surgery. They are currently cleared for sale in the US and have been sold here since July 2016. The company was founded in 2012 and booked $11 million in revenue for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol “TELA.” Jefferies and Piper Jaffray are the joint bookrunners on the deal. No pricing terms were disclosed.

6) Aesthetic Medical International Holdings Group Ltd., which operates aesthetic medical services centers in China, announced terms for its US IPO. The Shenzhen, China-based company plans to raise $30 million by offering 2.5 million ADSs at a price range of $11 to $13. At the midpoint of the proposed range, Aesthetic Medical International Holdings would command a market value of $283 million. Aesthetic Medical International Holdings was founded in 1997 and booked $113 million in revenue for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol “AIH.” Cantor Fitzgerald, Haitong International and Prime Number Capital are joint bookrunners on the deal.

7) Oyster Point Pharma Inc. filed a preliminary prospectus for an $85 million IPO (most likely a placeholder). The Princeton, NJ-based biopharmaceutical firm develops therapies for ocular surface disorders. Lead candidate is OC-01, a nasal spray-formulated nicotinic acetylcholine receptor agonist designed to re-establish tear film homeostasis in patients with dry eye disease. A Phase 3 study is in process with topline data expected in mid-2020. If all goes well, a US marketing application will be filed in H2 2020. The company plans to list on the Nasdaq under the symbol “OYST.”

8) And Galera Therapeutics Inc. filed a preliminary prospectus for an $86 million IPO. The Malvern, PA-based biopharmaceutical firm develops therapeutics that, it says, have the potential to transform cancer radiotherapy by virtue of less tissue toxicity and greater efficacy. Specifically, its drugs mimic superoxide dismutase enzymes which protect against the toxicity of radiotherapy-stoked superoxide, a highly reactive molecule that damages/kills cells. Lead candidate is Phase 3-stage GC4419, a small molecule dismutase mimetic for the potential reduction of severe oral mucositis (OM) in patients with head and neck cancer. (OM is a common side effect in these patients since they are routinely treated with radiation). The company plans to list on the Nasdaq under the symbol “GRTX.”

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