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Darling Dozen - 12 Healthcare IPOs That Didn't Disappoint

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2018 has been a banner year for healthcare IPOs in the U.S. - with more than 80 companies making a debut on the bourses compared to 50 in 2017.

In terms of IPO price per share, animal health care company, Elanco Animal Health Inc. (ELAN), tops the list, at $24 per share, followed by Rubius Therapeutics Inc. (RUBY) and Moderna Inc. (MRNA), both at $23 per share.

At the bottom of the list are Provention Bio Inc. (PRVB) and DiaMedica Therapeutics Inc. (DMAC) whose IPOs were priced at $4 per share.

Let's take a look at some of the healthcare IPOs of 2018 that have delivered more than 50% returns.

1. Tricida Inc. (TCDA) - 60% Returns

Tricida is a pharmaceutical company developing TRC101, a non-absorbed, orally-dosed polymer designed to treat metabolic acidosis in patients with chronic kidney disease.

The Company went public on the Nasdaq Global Select Market on June 28, pricing its shares at $19.00 each. The stock, which opened at $25 in its first day of trading, touched an intraday high of $40.10 on September 10, reflecting a gain of 60% in 2.5 months.

Tricida has successfully completed a pivotal phase III trial of TRC101 in chronic kidney disease patients with metabolic acidosis.

Near-term Catalysts:

-- Completion of the 40-week safety extension trial, TRCA-301E, in the first half of 2019.
-- Availability of NDA-enabling 12-month registration stability data for TRC101 in mid-2019.
-- Submission of NDA for TRC101, seeking approval of TRC101 through the FDA's Accelerated Approval Program, in the second half of 2019.

TCDA closed Monday's trading at $30.78, down 3.30%.

2. Allogene Therapeutics Inc. (ALLO) - 62% Returns

Allogene Therapeutics is a clinical stage immuno-oncology company developing genetically engineered allogeneic T cell therapies for the treatment of cancer.

The Company went public on the Nasdaq Global Select Market, on October 11, priced at $18 per share. The stock, which opened at $22 in the first day of trading, touched an intraday high of $35.55 on November 7, representing a gain of 62% in less than a month.

Pipeline:

The Company's lead product candidate is UCART19, a CAR T cell product, being developed in collaboration with French pharmaceutical company Servier.

UCART19 is under two phase I trials - in adult patients with relapsed or refractory (R/R) B-cell precursor acute lymphoblastic leukemia (ALL), dubbed CALM, and in pediatric patients with relapsed or refractory (R/R) B-cell precursor acute lymphoblastic leukemia, known as PALL.

ALLO-501, for the treatment of patients with R/R NHL, ALLO-715, for the treatment of patients with R/R multiple myeloma, and ALLO-647, which is designed to be used prior to infusing other product candidates as part of the lymphodepletion regimen, all of which are in preclinical testing are the other product candidates in the pipeline.

Recent events:

On December 3, the Company announced updated analysis of pooled clinical data from two ongoing phase 1 studies of UCART19 in the PALL and CALM studies.

Near-term Catalysts:

-- A Phase 1 trial of ALLO-501 for the treatment for relapsed/refractory non-Hodgkin lymphoma is expected to begin in the first half of 2019 and will be sponsored by Allogene.
-- The Company expects to advance UCART19 to potential registrational trials in the second half of 2019.

ALLO closed Monday's trading at $25.42, down 3.05%.

3. Guardant Health Inc. (GH) - 79% Returns

Guardant Health is a precision oncology company focused on helping conquer cancer through use of its proprietary blood tests, vast data sets and advanced analytics.

The Company went public on the Nasdaq Global Select Market, on October 4, offering its shares at a price of $19.00 each. The stock, which opened at $27.75 in debut trade, touched an intraday high of $49.55 on December 7, reflecting a gain of 79% in just 2 months.

Guardant's first earnings report as a public company was released on November 19, and it was for the third quarter ended September 30, 2018.

Net loss attributable to Guardant Health narrowed to $24.5 million or $1.94 in the third quarter of 2018 from $33.3 million or $2.76 per share in the corresponding period of the prior year. Revenue was $21.7 million in the three months ended September 30, 2018, a 95% increase from $11.1 million in the three months ended September 30, 2017.

For full year 2018, the Company expects revenue to be in the range of $82.0 million to $84.0 million.

On December 13, Guardant inked a multi-year agreement with AstraZeneca (AZN) to develop blood-based companion diagnostic tests for AstraZeneca's oncology portfolio.

GH closed Monday's trading at $36.24, down 8.97%.

4. Kezar Life Sciences Inc. (KZR) - 82% Returns

Kezar is a clinical-stage biotechnology company developing novel small molecule therapeutics for patients with autoimmune diseases and cancer.

The Company went public on the Nasdaq Global Select Market on June 21, pricing its shares at $15 each. The stock, which opened at $20 in its market debut, touched an intraday high of $36.33 on Dec 13, a gain of nearly 82%.

Clinical Trials & Near-term Catalysts:

The Company's lead product candidate is KZR-616.

-- Enrollment continues in phase Ib/II trial of KZR-616 in lupus and lupus nephritis, with top-line results from the initial two cohorts of the phase 1b study expected in the first half of 2019.
-- The phase II portion of the trial in lupus nephritis patients is expected to be initiated during the first half of 2019.

KZR closed Monday's trading at $22.69, down 24.32%.

5. Autolus Therapeutics plc (AUTL) - 90% Returns

Autolus is a UK-based clinical-stage biopharmaceutical company developing next-generation programmed T cell therapies.

The Company went public on the Nasdaq Global Select Market on June 22, pricing its American Depositary Shares at a price of $17.00 per ADS. The stock, which opened at $28 in its market debut, touched an intraday high of $53.24 on November 9, a gain of 90% in 4.5 months.

Pipeline:

-- AUTO1, under a phase I trial in patients with pediatric relapsed or refractory acute B lymphocytic leukemia, or pediatric ALL, dubbed CARPALL, and a phase I clinical trial in adult patients with ALL, dubbed ALLCAR19 study.
-- AUTO2, under a phase I/II clinical trial in relapsed or refractory multiple myeloma.
-- AUTO3, under phase I/II clinical trials in diffuse large B-cell lymphoma, and pediatric ALL.

Near-term Catalysts:

-- Updated safety and preliminary efficacy data from the ALLCAR19 study is expected in mid-2019.
-- Results from the phase I/II clinical trial of AUTO2 in relapsed or refractory multiple myeloma are anticipated in the fourth quarter of 2019.

AUTL closed Monday's trading at $31.34, down 4.54%.

6. Scholar Rock Holding Corp. (SRRK) - 110% Returns

Scholar Rock is focused on developing new medicines to treat a range of serious diseases with high unmet medical need, including neuromuscular disorders, cancer, fibrosis, and anemia.

The Company went public on the Nasdaq Global Select Market on May 24, offering its shares at a price of 14.00 each. The stock, which opened at $14.25 in debut trade, touched an intraday high of $30 on December 12, representing a gain of 110%, in 6.5 months.

The Company's most advanced product candidate is SRK-015, being developed for the treatment of patients with Spinal Muscular Atrophy (SMA), which is under phase I testing in health volunteers.

Near-term Catalysts:

-- Interim results from phase I trial of SRK-015 are expected in the first quarter of 2019.
-- A phase II proof-of-concept study for SRK-015 in Spinal Muscular Atrophy is expected to be initiated in the first quarter of 2019.
-- Identify a second indication for SRK-015 in the first half of 2019.

SRRK closed Monday's trading at $23.84, down 9.18%.

7. Crinetics Pharmaceuticals Inc. (CRNX) - 118% Returns

Crinetics Pharma is a clinical stage pharmaceutical company developing drugs for rare endocrine diseases and endocrine-related tumors.

The Company went public on the Nasdaq Global Select Market on July 18, offering its shares at a price of $17 each. The stock, which opened at $19.25 in its market debut, touched an intraday high of $42 on September 10, and that's a gain of 118%.

Crinetics Pharma's lead product candidate is CRN00808 for the treatment of acromegaly.
Initiation of the planned phase II clinical studies of CRN00808, dubbed ACROBAT EVOLVE and ACROBAT EDGE, is expected in early 2019.

CRNX closed Monday's trading at $32.84, down 2.20%.

8. Inspire Medical Systems Inc. (INSP) - 136% Returns

Inspire Medical Systems is a medical technology company, which markets Inspire therapy - the first and only FDA-approved neurostimulation technology for patients with obstructive sleep apnea.

The Company went public on the New York Stock Exchange on May 3, offering its shares at a price of $16 each. The stock, which opened at $24.49 on the first day of trading, touched an intraday high of $57.87 on September 5, a gain of 136% in 4 months.

On November 6, the Company reported financial results for the third quarter ended September 30, 2018.

Revenue generated was $13.1 million in the third quarter of 2018, an 80% increase over the same quarter last year. The Company expects full-year 2018 revenue to be in a range of $47.5 million to $48.0 million, representing growth of approximately 66% to 68% over full-year 2017 revenue.

INSP closed Monday's trading at $43.79, up 5.88%.

9. Allakos Inc. (ALLK) - 141% Returns

Allakos is a clinical stage biotechnology company focused on developing therapeutic antibodies for the treatment of various eosinophil and mast cell related diseases.

The Company went public on the Nasdaq Global Select on July 19, pricing its shares at $18 each. The stock, which opened at $27.20 in its first day of trading, touched an intraday high of $65.48 on December 11, representing a gain of nearly 141%.

The lone product candidate of Allakos is AK002.

Near-term Catalysts:

A phase II trial of AK002 in patients with eosinophilic gastritis with or without eosinophilic gastroenteritis, dubbed ENIGMA is ongoing. Top-line data from this study are expected during mid-2019.

A phase II study of AK002 in patients with chronic spontaneous urticaria (Xolair naïve and Xolair failures), cholinergic urticaria and dermatographic urticaria is underway, with top-line results from the chronic spontaneous Xolair naïve cohort expected early in the first quarter of 2019. Top-line results from the remaining cohorts are expected in mid-Q1 2019.

Enrollment has been completed in a phase I trial of AK002 in patients with indolent systemic mastocytosis (ISM), and top-line results from the multiple ascending dose portion of the trial are expected in mid-Q1 2019.

A phase I trial of AK002 in patients with atopic keratoconjunctivitis, vernal conjunctivitis, and severe perennial allergic conjunctivitis is underway - with top-line results expected late in the first quarter, or early in the second quarter, of 2019.

ALLK closed Monday's trading at $56.66, down 6.66%.

10. Twist Bioscience Corp. (TWST) - 165% Returns

Twist Bioscience Corp is a synthetic biology company that pioneers a new method of manufacturing synthetic DNA by "writing" DNA on a silicon chip.

The Company went public on the Nasdaq Global Select Market, on October 31, pricing its shares at $14 each. The stock, which opened at $13 in its market debut, touched an intraday high of $34.46 on December 6, a gain of 165% in a little over a month.

Twist Bioscience's first earnings report as a public company will be released on December 19, and it is for the fourth quarter and fiscal year ended September 30, 2018.

Revenue was $2.3 million in fiscal 2016; $10.8 million in fiscal 2017, and $17.0 million for the nine months ended June 30, 2018.

TWST closed Monday's trading at $20.13, down 2.47%.

11. Liquidia Technologies Inc. (LQDA) - 214% Returns

Liquidia is a late-stage clinical biopharmaceutical company developing human therapeutics using its proprietary PRINT technology.

The Company went public on the Nasdaq Capital Market on July 26, 2018, offering its shares at a price of $11 each. The stock, which opened at $12.25 in its first day of trading, touched an intraday high of $38.46 on October 9, a gain of nearly 214%.

The Company has two product candidates in its pipeline:

-- LIQ861 for the treatment of pulmonary arterial hypertension, or PAH, under phase III trial, dubbed INSPIRE.
-- LIQ865 for the treatment of local post-operative pain, which completed a phase Ia clinical trial in Denmark in March 2017, and a phase Ib clinical trial in the United States in April 2018.

Near-term Catalysts:

-- The two-week safety data readout from the phase III trial of LIQ861 (INSPIRE) is anticipated in the first quarter of 2019.
-- A phase II-enabling toxicology studies for LIQ865, currently being evaluated for the treatment of local post-operative pain, is expected to be initiated in the coming months.

LQDA closed Monday's trading at $20.51, down 3.98%.

12. Tilray Inc. (TLRY) - 1,201% Returns

Tilray is involved in medical cannabis research, cultivation, processing and distribution.

The Company went public on the Nasdaq Global Select Market on July 19, pricing its shares at $17 each. The stock, which opened at $23.05 in debut trade, touched an intraday high of $300 on September 19, a gain of a whopping 1,201% in just 2 months.

Tilray's second earnings report as a public company was released on November 13, and it was for the third quarter ended September 30, 2018.

Net loss for the third quarter of 2018 widened to $18.7 million or $0.20 per share from $1.8 million or $0.02 per share for the third quarter of 2017. Revenue in the recent third quarter increased to $10.0 million, up 85.8% over the year-ago comparable quarter, thanks to increased patient demand, bulk sales to other Licensed Producers, and accelerated wholesale distribution in export markets.

TLRY closed Monday's trading at $65.89, down 12.30%.

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