logo
Plus   Neg
Share
Email

Biotech IPOs For The Week Ahead

biotechipo-july19-lt.jpg

The IPO activity in the U.S. healthcare sector has had a strong showing so far in the last quarter of the year, with 12 listings in the month of October alone.

Let's take a look at the biotech companies that are going public in the week ahead.

1. 89bio Inc

Israeli based 89bio Inc. is a clinical-stage biopharmaceutical company developing innovative therapies for the treatment of liver and cardio-metabolic diseases.

Founded in 2018, the company has planned to list its IPO on the Nasdaq Global Select Market, under the symbol "ETNB", on November 6, 2019.

89bio was founded in Israel but moved its headquarters to San Francisco although its development center remains in Herzliya.

89bio has offered to sell 4.375 million shares of its common stock in the offering, and granted the underwriters an option for 30 days to purchase up to 656 thousand additional shares of common stock.

The initial public offering price is expected to be between $15 and $17 per share.
Underwriters of the IPO:

BofA Securities, Inc., SVB Leerink LLC, RBC Capital Markets, LLC, Oppenheimer & Co. Inc

Pipeline and Near-term Catalysts:

The company's lead product candidate BIO89-100 is a specifically engineered glycoPEGylated analog of fibroblast growth factor 21 or FGF21,currently in a proof of concept Phase 1b/2a clinical trial of BIO89-100 in patients with of nonalcoholic steatohepatitis (NASH ) or patients with nonalcoholic fatty liver disease (NAFLD) and a high risk of NASH. The company expects top line data from this trial in the second half of 2020.

The company also intends to develop BIO89-100 for the treatment of severe hypertriglyceridemia (SHTG). The company expects to initiate Phase 2 trial in SHTG patients in the first half of 2020, with top line data expected in the first half of 2021.

In April 2018, 89bio entered into Reagent Supply and Technology Transfer Agreement with Teva for commercialization of BIO89-100, and the term was recently extended by mutual agreement until December 31, 2022.

2. Centogene B.V.

Rostock, Germany-based Centogene is a commercial-stage company operating in the field of genetic diagnostics for rare diseases.

Centogene has offered to sell 4.0 million shares in the offering. The initial public offering price is expected to be between $14.00 and $16.00 per share.

The company has granted underwriters an option for 30 days to purchase up to 600 thousand additional shares.

Founded in 2006, the company is scheduled to list its common stock on The Nasdaq Global Market under the symbol "CNTG." on November 7, 2019.

Underwriters of the IPO:

SVB Leerink LLC, Evercore Group L.L.C., Robert W. Baird & Co. Inc, BTIG, LLC
Products:

The company operates in two segments - Pharmaceutical and Diagnostics

The pharmaceutical segment provides a variety of services to its pharmaceutical partners, including early patient recruitment and identification, epidemiological insights, biomarker discovery and patient monitoring. Revenues in our pharmaceutical segment are generated primarily from collaboration agreements with the pharmaceutical partners. As of August 31, 2019, Centogene collaborated with over 35 pharmaceutical partners for over 30 different rare diseases.

Diagnostics

The clinical diagnostics segment provides targeted genetic sequencing and diagnostics services to patients through distribution partners and clients, who are typically physicians, labs or hospitals. Revenues from the diagnostics segment are typically generated by set fees per diagnostic test or per bundle of diagnostic tests under contracts with the clients.

Financial Numbers:

For the six month ended June 30, 2019, the company's loss widened to 11.56 million euros from a loss of 6.62 million euros in the same period last year, whereas revenue for the period rose to 21.92 million euros from the prior year's 17.01 million euros.

3. CNS Pharmaceuticals Inc

CNS Pharmaceuticals is a preclinical stage pharmaceutical company developing anticancer drug candidates for the treatment of primary and metastatic brain and central nervous system tumors.

The company is scheduled to list its IPO on the Nasdaq Global Market under the symbol "CNSP" on November 8,2019.

CNS Pharma has offered to sell 2.125 million shares of common stock in the offering, and the underwriters have an option for 45 days to purchase up to 319 thousand additional shares.

The initial public offering price is expected to be between $4.00 and $5.00 per share.

The Benchmark Co is acting as representative for the underwriters in this offering.

Pipeline:

The company's lead drug candidate is Berubicin, which is being developed for the treatment of Glioblastoma Multiforme (GBM), a type of brain cancer and potentially for other CNS malignancies.

In 2017, CNS entered into a collaboration agreement with Reata to further advance the development of Berubicin. CNS has obtained a worldwide exclusive license to the Berubicin patent from Houston Pharmaceuticals.

Reata conducted a Phase I clinical trial on Berubicin but subsequently allowed their IND with the FDA to lapse for strategic reasons.

CNS Pharma is continuing the process of preparing a new IND concordant for Berubicin for Injection before beginning further clinical trials. The Company hopes to commence a phase IIa clinical trial of Berubicin for the treatment of GBM in 2020.

4. TELA BIO INC

Malvern, Pennsylvania-based TELA Bio is a commercial stage medical technology company developing new tissue reinforcement materials for the treatment of hernias and for advanced soft tissue reconstruction requirements.

Founded in 2012, the company is scheduled to list its IPO on the Nasdaq Global Market under the symbol "TELA" on November 8, 2019.

TELA Bio has offered to sell 4.0 million shares of common stock in the offering, and the underwriters have an option for 30 days to purchase up to 600,000 additional shares.

The initial public offering price is expected to be between $14.00 and $16.00 per share.

Underwriters of the IPO:

Jefferies LLC,Piper Jaffray & Co.,Canaccord Genuity LLC,JMP Securities LLC

Products:

The company markets OviTex Reinforced Tissue Matrix, OviTex PRS Reinforced Tissue Matrix and OviTex LPR that are used for ventral hernia repair and abdominal wall reconstruction, inguinal hernia repair and hiatal hernia repair. The OviTex products are now sold to more than 200 hospital accounts in the U.S.

Financial numbers:

For the six month ended June 2019, the company's net loss attributable to common stockholders narrowed to $16.01 million or $54.06 per share from a loss of $18.84 million or $63.96 per share reported a year ago.

Revenue for the period surged to $6.61 million from $3.64 million in the previous year.

For comments and feedback contact: editorial@rttnews.com

Business News

RELATED NEWS
Follow RTT
>