The IPO Buzz: Health Care Rules a Big Week

This week’s calendar lists 13 IPOs looking to raise almost $1.6 billion. It is loaded with nine health-care offerings. To account for the rest of it, the calendar includes a REIT, two SPACs and one technology deal.

The tech IPO appears to be “the pick of the week.” Worth noting: Eight of this week’s 13 IPOs are scheduled to be priced on Wednesday evening for Thursday’s trading.

Let’s Get Vertical

Let’s take a quick look at the technology offering:

i3 Verticals(IIIV proposed), based in Nashville, Tennessee, delivers seamless integrated payment and software solutions to small- and medium-sized businesses and organizations in strategic vertical markets. The company offers electronic payment services to schools, non-profits, municipalities, property management companies and health-care providers.

What caught some investors’ eyes was Adyen’s (ADYEN.NL)IPO last week. The company, based in Amsterdam in the Netherlands, is a global payment provider that lets businesses accept online, mobile, point-of-sale and in-store payments on a single platform. Adyen priced its IPO at €240 a share on Tuesday, June 12th, and the stock closed on Friday, June 15th, at €420 – UP 75 percent from its IPO price.

i3 Verticals’ IPO is scheduled to be priced on Wednesday evening for Thursday morning’s trading.

(For more information, please check the company profiles on’s website.)

Big Dose of Health-Care IPOs

The IPO health-care sector has not exactly been a leader in 2018’s market. Year to date, bankers have priced 22 health-care IPOs, according to the U.S. Securities and Exchange Commission’s filings. That represents 27.5 percent of 2018’s total volume of 80 IPOs.

The aftermarket performance of the health-care sector’s IPOs, as of the close on Friday, June 15th, was 13 up and 9 down – with an average gain of 25 percent. In contrast, the aftermarket performance of all 80 IPOs of 2018 was 55 up and 25 down – with an average gain of 36.7 percent.

This week’s health-care IPOs are:

Aptinyx (APTX proposed), based in Evanston, Illinois, is developing next=generation treatments for chronic central nervous system and brain disorders. Note: Insiders have indicated interest in buying $30 million of the $80 million offering – or 37.5 percent of the deal.

Autolus Therapeutics (AUTL proposed), based in London, is a biopharmaceutical company developing next-generation programmed T-cell therapies to treat cancer. Note: Insiders have indicated for $60 million of the $125 million offering – or 48 percent of the IPO.

AVROBIO (AVRO proposed), based in Cambridge, Massachusetts, is developing stem-cell gene therapies to cure rare diseases. The company’s initial focus is on a group of rare genetic diseases referred to as lysosomal storage diseases, which today are primarily managed with enzyme replacement therapies. Note: Insiders have indicated for $37.5 million of the $75 million offering – or 50 percent of the IPO.

DERMAdoctor (DDOC proposed), based in Kansas City, Missouri, is an omni-channel innovative skincare company primarily focused on the creation of products designed to target common skin concerns, ranging from aging and blemishes to dry skin, perspiration and keratosis pilaris.

Eidos Therapeutics (EIDX proposed), based in San Francisco, is a clinical-stage biopharmaceutical company focused on the large and growing unmet need in a family of slowly progressive diseases caused by transthyretin (TTR) amyloidosis, which is a buildup of protein in the heart, the nervous system or the digestive tract. Note: Insiders have indicated for $50 million of the $100 million offering – or 50 percent of the IPO.

Electrocore (ECOR proposed), based in Basking Ridge, New Jersey, is a commercial-stage bio-electronic medicine company with a non-invasive vagus nerve stimulation (VNS)therapy designed to treat the acute pain of migraine headache in adults, migraine in adolescents and post-traumatic headache. The therapy is delivered via an FDA-cleared prescription-only handheld device called gammaCore, the prospectus says. The company is exploring potential new labeling claims in rheumatology, including Sjögren’s syndrome and rheumatoid arthritis. Note: Insiders have indicated for $20 million of the $65 million offering – or 30.4 percent of the IPO.

Kezar Life Sciences (KZR proposed), based in South San Francisco, is a clinical-stage biotechnology company, discovering and developing novel small-molecule therapeutics to treat unmet needs in autoimmune diseases, including lupus, and cancer. Note: Insiders have indicated for $30 million of the $70 million offering – or 42.9 percent of the IPO.

Magenta Therapeutics (MGTA proposed), based in Cambridge, Massachusetts, is developing a pipeline of novel therapies aimed at improving stem-cell transplants. The company believes it can refocus that conversation on the cure and enable many more patients with devastating diseases, including multiple sclerosis, leukemia and sickle cell disease to benefit from advances in transplant medicine. Note: Insiders have indicated for $40 million of the $100 million offering – or 40 percent of the IPO.

Xeris Pharmaceuticals (XERS proposed), based in Chicago, Illinois, is a specialty pharmaceutical company leveraging its novel non-aqueous formulation technology platforms, XeriSol and XeriJect, to develop and commercialize ready-to-use injectable and infusible drug formulations. Its lead product candidate is the Glucagon Rescue Pen to treat severe hypoglycemia in people with diabetes. Note: Insiders have indicated for $30 million of the $75 million offering – or 40 percent of the IPO.

A REIT and Two SPACs

The rest of the week’s IPO Calendar is as follows:

Essential Properties Realty Trust (EPRT proposed), based in Princeton, New Jersey, is a real estate investment trust (REIT) that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses.

LF Capital Acquisition (LFACU proposed), based in New York City, is a newly organized “blank check” company – also known as a special-purpose acquisition company (SPAC) – formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Its initial focus will target businesses in the commercial banking and financial technology industries.

Twelve Seas Investment Company (TWLVU proposed), based in London, is a “blank check” company – a SPAC – that intends to focus its initial business combination search efforts on private companies in the Pan-Eurasian region with positive operating cash flow, significant assets and successful management teams that are seeking access to the U.S. capital markets. The Pan-Eurasian region stretches from Western Europe through Eastern Europe to Central Asia, including Turkey and India.

June’s Final Week

This brings us to the week of June 25th, when the IPO Calendar has only three names looking to raise $612 million. But anything can happen when the SEC’s filing window opens for business again on Monday morning.

Stay tuned.

Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinion.