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This Week's Healthcare IPOs

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The end of the third quarter is fast approaching. The third quarter IPO activity in the U.S. pharma/biotech sector has been somewhat tepid with around 9 listings so far in the quarter.

Now it's the time to take a look at the U.S. biotech IPO calendar of this week.

1. 10x Genomics

Pleasanton, California-based 10x Genomics is a life science technology company developing single-cell sequencing lab hardware and software.

Founded in 2012, the Company is scheduled to list its IPO on the Nasdaq Global Select Market, under the symbol "TXG", on September 12, 2019. The initial public offering price is expected to be between $36 and $38 per share.

10x Genomics has offered to sell 9 million shares of Class A common stock in the offering, and the underwriters have an option for a period of 30 days to purchase up to 1.35 million additional shares of Class A common stock.

Underwriters of the IPO:

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BofA Securities, Inc., Cowen and Company, LLC

Products:

The Company generates revenue from the sale of its Chromium solutions, and in particular its Single Cell Gene Expression solutions. These products have enabled researchers to make fundamental discoveries across multiple areas of biology, including oncology, immunology and neuroscience.

Since its first product launch in mid-2015 through June 30 this year, the company has sold 1,284 instruments to researchers around the world.

Financial Status:

For the six month ended June 30, 2019, the company's net loss narrowed to $14.51 million or $0.96 per share from $21.62 million or $1.66 per share last year. Revenue for the period rose to $109.4 million from $59.15 million a year earlier.

2. SmileDirectClub Inc

Nashville, Tennessee-based SmileDirectClub is a teledentistry technology company developing at-home teeth straightening systems.

Founded in 2014, the company is scheduled to list its Class A common stock on the NASDAQ Global Select Market under the symbol "SDC "on September 12, 2019.

SmileDirectClub has offered to sell 58.537 million shares of Class A common stock in the offering. The initial public offering price is expected to be between $19.00 and $22.00 per share.

The company has granted the underwriters an option for 30 days to purchase up to 8.78 million additional shares.

Underwriters of the IPO:

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Securities, Inc., Jefferies LLC, UBS Securities LLC,Credit Suisse Securities (USA) LLC,Guggenheim Securities, LLC, Stifel, Nicolaus & Company, Inc, William Blair & Company, L.L.C., Loop Capital Markets LLC

Financial Numbers:

The Company generates revenue through sales of aligners, retainers, and other products.

For the 6-month ended June 30, 2019, the company's net loss widened to $52.95 million from $33.81 million in the comparable period last year. Revenue in the first half of 2019 more than doubled to $373.5 million from $175.1 million reported a year ago.

3. Satsuma Pharmaceuticals

South San Francisco, California-based Satsuma Pharmaceuticals is a clinical-stage biopharmaceutical company developing a novel therapeutic product for the acute treatment of migraine.

The Company is scheduled to list its IPO on the Nasdaq Global Market, under the symbol "STSA", on September 13, 2019.

Satsuma Pharma has offered to sell 5.0 million shares of its common stock in the offering, and the underwriters have an option for a period of 30 days to purchase up to 750 thousand additional shares of common stock.

The initial public offering price is expected to be between $14 and $16 per share.

Underwriters of the IPO:

Credit Suisse Securities (USA) LLC, SVB Leerink LLC, Evercore Group L.L.C.

Pipeline and Near-term Catalysts:

The company has only one product candidate, STS101, a drug-device combination of a proprietary dry-powder formulation of dihydroergotamine mesylate, or DHE, for the acute treatment of migraine.

A phase III trial of STS101 in approximately 1,140 migraine patients, dubbed EMERGE, is underway, with topline data anticipated in the second half of 2020.

If all goes well as planned, the company has planned to initiate a 12-month safety trial of STS101, with NDA filing anticipated by the end of 2021.

4. SpringWorks Therapeutics

Stamford, Connecticut-based SpringWorks Therapeutics is a clinical-stage biopharmaceutical company developing small molecule therapies for rare cancers.

Founded in 2017, the company plans to list its shares on the Nasdaq under the symbol SWTX on September 13, 2019.

SpringWorks Therapeutics has offered to sell 7.35 million shares of common stock in the offering, and the underwriters have an option for 30 days to purchase up to 1.1 million additional shares.

The initial public offering price is expected to be between $16.00 and $18.00 per share.

Underwriters of the IPO:

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC ,Cowen and Company, LLC, Wedbush Securities Inc

Pipeline:

- SpringWorks' lead product candidate is Nirogacestat, an oral, small molecule gamma secretase inhibitor, currently in Phase 3 clinical trial for the treatment of desmoid tumors, dubbed DeFi trial. A combination of Nirogacestat + belantamab mafodotin is being explored by GSK in patients with relapsed or refractory multiple myeloma, or RRMM.

- Up next in the pipeline is Mirdametinib, an oral, small molecule MEK inhibitor. A potentially registrational Phase 2b clinical trial Mirdametinib for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas or NF1-PN, dubbed ReNeu, is expected to begin this quarter. A combination of Mirdametinib + lifirafenib is being evaluated by BeiGene in patients with advanced or refractory solid tumors.

Nirogacestat and mirdametinib were granted both Orphan Drug Designation and Fast Track Designation in August 2017.

- BGB-3245 is an investigational oral, selective small molecule inhibitor of specific BRAF driver mutations and genetic fusions.

Near-term Catalysts:

-An update on DeFi trial is expected to be provided in the second half of 2020, ahead of anticipated top-line data readout in the second or third quarter of 2021.

- An update on the ReNeu trial is expected to be provided between the fourth quarter of 2020 and the first quarter of 2021.

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