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Healthcare IPOs That Disappointed Investors In 2019

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As we ready to step into 2020, it's time to take a look at some of the healthcare IPOs that failed to impress investors in 2019. As of now, 76 healthcare companies have made their debut on the bourses in 2019 versus more than 80 in the previous year and 50 in 2017.

Listed below are some of the healthcare IPOs of 2019 that failed to live up to expectations.

1. Anchiano Therapeutics (ANCN)

Anchiano Therapeutics, formerly known as Biocancell, is a clinical-stage biotechnology company developing a targeted gene therapy to improve the standard treatment for early-stage bladder cancer.

The Company went public on the Nasdaq Global Select Market on February 12, offering its American Depositary Shares at a price of $11.50 each. The stock, which opened at $11.50 in its first day of trading, touched an intraday low of $1.23 on November 27,2019, reflecting a decline of 89%. Based on Friday's (Dec.20) closing price of $1.35, ANCN is 88% down from its IPO price.

Recent event:

On November 15, the company announced the discontinuation of its Phase 2 Codex study evaluating the gene therapy inodiftagene vixteplasmid in patients with BCG-unresponsive non-muscle-invasive bladder cancer or NMIBC after analysis of data indicated a low probability of achieving an efficacy profile that would be necessary to support regulatory approval.

2. HOOKIPA Pharma Inc. (HOOK)

Hookipa Pharma is a clinical-stage biopharmaceutical company developing a new class of immunotherapeutics for the treatment of infectious diseases and cancers.

The Company went public on the Nasdaq Global Select Market, on April 18, offering its shares at a price of $14.00 each. The stock, which opened at $14.30 in debut trade, touched an intraday low of $6.06 on June 26, reflecting a decline of 57%. Based on Friday's (Dec.20) closing price of $10.51, HOOK is 25% down from its IPO price.

Recent event:

On November 7, the company announced that the FDA cleared its IND Application for a Phase 1/2 clinical trial of HB-201, a TheraT-based immunotherapy, for the treatment of Human Papilloma Virus (HPV)-positive cancers.

Pipeline & Near-term Catalyst:

-- A phase II clinical trial of HB-101, a prophylactic vaccine for Cytomegalovirus, is underway. The safety and immunogenicity data from the first cohorts enrolled in this trial are expected in the first half of 2020, with preliminary efficacy data to follow in the second half of 2020.

-- A phase I/II trial combining HB-201 and HB-202, both with and without a checkpoint inhibitor, in patients with treatment-refractory HPV16+ cancers is anticipated to be initiated in the second half of 2020.

3. Trevi Therapeutics Inc. (TRVI)

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

The Company went public on the Nasdaq Global Select on May 7, offering its shares at a price of $10.00 each. The stock, which opened at $9.50 in its first day of trading, touched an intraday low of $2.65 on November 4, representing a loss of about 73.5%. Based on Friday's (Dec.20) closing price of $3.83, TRVI is 62% down from its IPO price.

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 II clinical trial of Nalbuphine ER for chronic cough in patients with idiopathic pulmonary fibrosis is underway, with topline data expected in the first half of 2020.

4. Axcella Health Inc. (AXLA)

Axcella Health Inc. is a biotechnology company developing AXA candidates that translate complex human biology into potential drug product and non-drug candidates that modulate metabolism.

The Company went public on the Nasdaq Global Select Market, on May 9, pricing its shares at $20 each. The stock, which opened at $15.12 in its market debut, touched an intraday low of $2.76 on November 19, a decline of 86% in six months. Based on Friday's (Dec.20) closing price of $3.41, AXLA is 83% down from its IPO price.

Near-term Catalysts:

-A non-IND clinical study to assess the impact of AXA1665 on safety, tolerability and physiology in subjects with mild and moderate hepatic insufficiency is expected to complete enrollment in early 2020, with data expected in the first half of 2020.

-A non-IND clinical study to assess the impact of AXA4010 on safety, tolerability and blood physiology in subjects with sickle cell disease is expected to complete enrollment in the first half of 2020, with data expected in the second half of 2020.

- AXA1125 and AXA1957 are currently under a 16-week, randomized, single-blind, placebo-controlled, Non-IND, IRB-Approved Clinical Study in approximately 105 adult subjects with NAFLD, with data readout expected in the second half of 2020.

5. Personalis Inc. (PSNL)

Personalis Inc. is a cancer genomics company, which provides sequencing and data analysis services to support the development of cancer therapies.

The Company went public on the Nasdaq Global Select Market, on June 20, pricing its shares at $17 each. The stock, which opened at $23.60 in its market debut, touched an intraday low of $8.48 on December 3, a loss of 50%. Based on Friday's (Dec.20) closing price of $9.70, PSNL is 43% down from its IPO price.

Products:

The Company's NeXT Platform analyzes approximately 20,000 human genes, providing customers a multidimensional view of the tumor and tumor microenvironment from a single sample. The company also provides a complementary liquid biopsy assay that analyzes various human genes versus and plans to launch first liquid biopsy assay in 2020.

Recent event:

On November 13, the company has reported net loss for the third quarter ended September 30, 2019 of was $6.9 million or $0.22 per share, compared to $3.6 million or $1.19 per share in the year-ago quarter.

Quarterly revenues rose 47 percent to $17.2 million from $11.7 million a year ago.

Looking ahead, Personalis expects full year 2019 revenues of $64.5 million to $65.0 million, and full year 2020 revenues to be in range of $77.5 million to $83.5 million. Analysts polled by Thomson Reuters now expect revenue of $64.84 million and $80.25 million for 2019 and 2020, respectively.

6. Fulcrum Therapeutics, Inc. (FULC)

Fulcrum Therapeutics is a clinical-stage biopharmaceutical company developing treatments for genetically-defined diseases with high unmet medical needs and an initial focus on rare diseases.

The Company went public on the Nasdaq Global Select Market, on July 18, pricing its shares at $16 each. The stock, which opened at $14.50 in its market debut, touched an intraday low of $4.37 on October 22, a loss of 73% in 3 months. Based on Friday's (Dec.20) closing price of $14.28, FULC is 11% down from its IPO price.

Clinical Trials & Near-term Catalysts:

-- A phase IIb clinical trial of Losmapimod in facioscapulohumeral muscular dystrophy, dubbed ReDUX4, was initiated in August of this year. Clinical data are expected in the third quarter of 2020.

Facioscapulohumeral muscular dystrophy is characterized by progressive skeletal muscle loss that initially causes weakness in muscles in the face, shoulders, arms, and trunk, and progresses to weakness throughout the lower body.

7. Kaleido Biosciences (KLDO)

Kaleido Biosciences is a clinical-stage healthcare company developing microbiome metabolic therapies or MMTs, which are designed to modulate the metabolic output and profile of the microbiome by driving the function and distribution of the organ's existing microbes.

The Company went public on the Nasdaq Global Select Market, on February 28, offering its shares at a price of $15.00 per share. The stock, which opened at $12.80 in its market debut, touched an intraday low of $4.80 on October 17, a loss of 68%. Based on Friday's (Dec.20) closing price of $5.38, KLDO is 64% down from its IPO price.

Near-term catalysts:

- A Phase 2 trial designed to evaluate KB195 in 18-24 patients, dubbed UNLOCKED, with urea cycle disorders (UCD) is underway, with data is expected in mid-2020.

-A clinical study of VITORA assessing KB109 in patients colonized with multi-drug resistant pathogens is is underway. Enrollment continues in the trial with data is anticipated in mid-2020.

8. Bicycle Therapeutics (BCYC)

Bicycle Therapeutics, based in Cambridge, United Kingdom, is a clinical-stage biopharmaceutical company developing a brand new class of small, chemically synthesized medicines called Bicycles.

The Company went public on the Nasdaq Global Select on May 23, pricing its American Depository Shares at $14 each. /ADS. The stock, which opened at $13.37 in its first day of trading, touched an intraday low of $6.24 on August 28, representing a loss of 55% in 3 months. Based on Friday's (Dec.20) closing price of $8.06, BCYC is 42% down from its IPO price.

Near-term Catalysts:

The lead product candidate is BT1718, a bicycle toxin conjugate (BTC), which is in Phase I/IIa clinical trials in patients with advanced solid tumors.

9. SmileDirectClub Inc (SDC)

SmileDirectClub is a teledentistry technology company developing at-home teeth straightening systems.

The Company went public on the Nasdaq Global Select on September 12, at $23 per share. The stock, which opened at $20.59 in its first day of trading, touched an intraday low of $7.56 on December 12, representing a loss of 67% in 3-months. Based on Friday's (Dec.20) closing price of $8.10, SDC is 65% down from its IPO price.

Financial Numbers:

On November 12, the company announced its financial results for the third quarter ended September 30, 2019. Net loss for the quarter was $387.6million or $0.89 per share, while total revenue rose 51% to $180.2 million.

Looking ahead, the company expects fiscal year 2019 revenues to be in the range of $750.0 million to $755.0 million, representing growth of 78% year-over-year at the mid-point of the range.

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