logo
Plus   Neg
Share
Email

Biotech IPOs For The Week Ahead

biotechipo-march29-lt.jpg

The following companies belonging to the healthcare sector are slated to debut on the U.S. public markets in the first week of May.

1. TransMedics Group

Andover, Massachusetts-based TransMedics, Inc. is a commercial-stage medical device company whose proprietary system, Organ Care System, enables transplantation of beating hearts and other functioning organs.

The company has offered to sell 4.7 million shares of common stock in the offering, and the underwriters have an option for 30 days to purchase up to 705,000 additional shares. The initial public offering price is expected to be between $15.00 and $17.00 per share.

The company, which was founded in 1998, plans to list its stock on the Nasdaq Global Select Market under the symbol "TMDX" on May 2, 2019.

Underwriters of the IPO:

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Cowen and Co. LLC and Canaccord Genuity LLC

Products & Pipeline:

The Company's OCS Heart, OCS Lung, and OCS Liver systems are CE Marked and are in use at leading transplant centers in Europe, Australia and Canada. The OCS Lung system, which is designed to preserve donor lungs prior to transplantation, received FDA
approval in the United States last March.

The Company has also sought FDA approval for its OCS Lung system for donor lungs currently unutilized for transplantation. A major deficiency letter, or MDL, for its application was issued by the FDA last November, to which the Company submitted its responses in March 2019.

The OCS Heart system, which is designed to keep a donor heart at a human-like, metabolically active state, is under FDA review in the U.S. A major deficiency letter, or MDL, for this application too was issued by the FDA in March of 2019, and the Company intends to submit its responses in the second half of 2019.

Financial Numbers

In the fiscal year ended December 30, 2018, net loss was $23.75 million on revenue of $13 million. This compared with a net loss of $20.82 million and revenue of $7.68 million in 2017.

2. Trevi Therapeutics

Trevi Therapeutics Inc. is a clinical-stage biopharmaceutical company developing Nalbuphine ER to treat serious neurologically mediated conditions.

Founded in 2011, Trevi is scheduled to list its stock on the Nasdaq Global Select Market, under the symbol "TRVI", on May 2, 2019.

The company has offered to sell 4.67 million shares in the offering - with the initial public offering price expected to be between $14.00 and $16.00 per share. The underwriters have a 30-day option to purchase up to 700,000 additional shares.

Pipeline and Near-term Catalysts:

The company is developing Nalbuphine ER for the treatment of chronic pruritus, chronic cough in patients with idiopathic pulmonary fibrosis, or IPF, and levodopa-induced dyskinesia, or LID, in patients with Parkinson's disease.

A phase II/III clinical trial of Nalbuphine ER in patients with severe pruritus associated with prurigo nodularis, dubbed PRISM, is underway - with topline data expected in the first half of 2020.

A phase Ib clinical trial of Nalbuphine ER in patients with chronic liver disease is ongoing, with data expected in the first half of 2019.

A phase II clinical trial of Nalbuphine ER in patients with idiopathic pulmonary fibrosis is expected to be initiated in the first half of 2019, with data expected in the first half of 2020.

A phase II clinical trial of Nalbuphine ER on levodopa-induced dyskinesia in patients with Parkinson's disease is expected to be initiated in the second half of 2019.

3. So-Young International Inc.

Beijing, China-based So-Young International Inc. operates an online platform for discovering, evaluating, and reserving medical aesthetic services in China.

Founded in 2013, the company is scheduled to list its American depositary shares (ADSs) on the Nasdaq Global Market under the symbol "SY" on May 2, 2019.

So-Young International has offered to sell 13 million ADSs, and the initial public offering price per ADS is expected to be between $11.80 and $13.80.

The company has granted the underwriters an option, exercisable for 30 days, to purchase up to additional 1.95 million ADSs to cover over-allotments.

Underwriters of the IPO:

Deutsche Bank Securities Inc, China International Capital Corporation Hong Kong Securities Ltd, Canaccord Genuity LLC, ICBC International Securities Limited, Needham & Company, LLC.

So-Young generates revenues primarily through information service fees and reservation service fees charged to medical aesthetic service providers.

According to Frost & Sullivan, customer acquisition spending by medical aesthetic service providers on online medical aesthetic service platforms is expected to reach 25.6% by 2023.

Matrix Partners China, Trustbridge Partners, Orchid Asia, ATCG Holdings, Youthful Acquisition L.P., Beauty & Health Holdings Limited are the principal shareholders.

For the three months ended March 31, 2019, net income rose 49.9% to RMB45.9 million or $6.7 million, while revenues grew 81.2% year-over-year to RMB206.1 million or $30.0 million.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT