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Healthcare IPOs For The Week Ahead

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The following companies belonging to the healthcare sector are slated to debut on the U.S. public market in the week ahead.

1. Happiness Biotech Group Ltd

China-based Happiness Biotech Group Limited is a nutraceutical and dietary supplements producer, developing a variety of products made from Chinese herbal and animal extracts.

Founded in 2004, the company is selling 69% of its products through regional distributors and 26.1% through supermarkets and chain drug stores.

The company has offered to sell 2.0 million ordinary shares and a selling shareholder plan to offer 400,000 shares in the offering - with the initial public offering price expected to be between $5.00 and $6.00 per share.

The underwriters have a 45-days option period to purchase up to 15% of the total number of Ordinary Shares offered in the IPO.

Happiness Biotech is scheduled to list its stock on the Nasdaq Global Select Market, under the symbol "HAPP", on October 25, 2019.

Univest Securities, LLC is acting as the representative and sole book-running manager in the offering.

Pipeline:

The company is conducting business through its wholly-owned subsidiaries, mainly Fujian Happiness and working with 400 distributors and has 10 experience stores with sales in 27 provinces.

The company's products include 32 types of nutraceutical and dietary supplements products, primarily Lucidum spore powder products, Cordyceps mycelia products and Ejiao solution products.

-Lucidum is a therapeutic mushroom and its main product under the product line is Happiness Lucidum Spore Powder Capsule.

- Cordyceps is a rare nourishment Chinese herbs and its main product is Daguangrong Cordyceps Mycelia Oral Liquid.

- Ejiao is the solid gum decocted and concentrated from the skin of donkeys and its main product is Happiness Ejiao Astragalus Oral Liquid.

Currently, the company has the following three products under development.

-- Lucidum and Cordyceps Militaris Beverage, which has completed the feasibility study, lab test, and pilot production test. The company expects to begin manufacturing and selling the product this year.

-- Lucidum and Astragalus Capsule, which has completed the feasibility study and lab test, with preparations for the pilot production test underway. The company expects to begin selling this product by the second half of 2020.

-- Lucidum and Ginkgo Oral Liquid is in pilot production test. The company expects to complete the development of product by the end of 2020 and starts selling it in 2021.

Financial numbers:

For the fiscal year ended March 31, 2018, the company reported net income of $17.5 million or $0.76 per share, higher than the $14.5 million or $0.63 per share reported a year ago.

Revenue for the year rose to $61.5 million from $53.0 million last year.

2. Progyny Inc.

The New York-based Progyny, Inc. is a benefits management company providing fertility healthcare services and family building benefits solutions in the U.S.

Founded in 2008, the Company is scheduled to list its IPO on the Nasdaq Global Select Market, under the symbol "PGNY", on October 25, 2019. The initial public offering price is expected to be between $14 and $16 per share.

Progyny has offered to sell 6.7 million shares and the selling stockholders are offering 3.3 million shares of common stock in the offering. Certain selling stockholders have granted the underwriters an option for 30 days to purchase up to an additional 1.5 million shares.

TPG Biotechnology Partners III, L.P. is a major shareholder, which is not selling any shares and will own about 25% of Progyny shares after the offering.

Underwriters of the IPO:

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Piper Jaffray & Co., SVB Leerink LLC, TPG Capital BD, LLC

Services offered:

The company offers fertility benefits solution and Progyny Rx solution to about 1.4 million employees from over 80 organizations.

The fertility benefits solution includes the Smart Cycle treatment bundles, which are the proprietary treatment bundles designed by Progyny to include the medical services required for a member's full course of fertility treatment, including all necessary diagnostic testing and access to the latest technology.

Progyny Rx provides the members with access to the medications needed during their fertility treatment.

Financial Numbers:

For the six month ended June 30, 2019, the company reported profit from continuing operations of $4.04 million versus a loss of $2.40 million last year.

Revenue for the period surged to $103.4 million from $48.4 million reported a year earlier.

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