A Quick Look Back
First, let’s look at the moonshots (any IPO that closes its opening day up 100 percent or more from initial offering price): Dicerna Pharmaceuticals (DRNA) priced its IPO of 6 million shares at $15 each, UP from 5 million shares at $11 to $13 each. It opened on Thursday morning at $30 and closed the day at $46, UP 206.7 percent. Ultragenyx Pharmaceutical (RARE) priced its IPO of 5.8 million shares at $21 each, UP from 4.8 million shares at $14 to $17 each. It opened on Friday morning at $45.80 and closed the day at $42.25, UP 101.2 percent. Clues about what to expect were found in their respective prospectuses. This week’s offerings are giving off similar signs.
With 11 biotechs in play, any one or more could catch lightning in a bottle. But the deals that are expected to attract a greater amount of interest are: Genocea Biosciences (GNCA – proposed) and Revance Therapeutics (RVNC – proposed)
Friend of Bill
Genocea Biosciences is a Cambridge, Massachusetts-based clinical stage biotechnology company that discovers and develops novel vaccines to address infectious diseases for which there are no vaccines or there are vaccines with limited effectiveness. Formed in 2006, Genocea has about 39 employees.
Underwriters plan to offer 5.5 million shares of Genocea Biosciences at $12 to $14 each to raise $71.5 million. The deal is expected to be priced on Wednesday evening to trade Thursday morning on The NASDAQ Global Market. The joint-lead managers are: Citigroup and Cowen. The co-managers are: Stifel and Needham.
Prospectus: (1) “Certain of our existing stockholders and their affiliated entities, including holders of more than 5% of our common stock, have indicated an interest in purchasing an aggregate of approximately $15.0 million in shares of our common stock in this offering at the initial public offering price.” (Cover Page); (2) Among the buyers are: “Bill & Melinda Gates Foundation and Johnson & Johnson Development Corporation” (Page 137); and (3) “… recently initiated a second collaboration with the Gates Foundation for which malaria is a priority infectious disease.” (Page 96)
Botox Gets Under Your Skin
Revance Therapeutics is a Newark, California-based a clinical stage specialty biopharmaceutical company focusing on the development of novel botulinum toxin products for multiple aesthetic and therapeutic applications. Revance Therapeutics’
lead product, RT001, is an investigational product that is a topical gel formulation of botulinum toxin type A in a proprietary single-use administration apparatus. The gel is applied to the skin using the company’s proprietary TransMTS® peptide technology to enable delivery of botulinum toxin across the skin, eliminating the need for injections. RT001 is currently in a Phase 3 clinical development program in the United States for the treatment of crow’s feet, those insidious signs of aging near the outer corners of the eyes. Formed in 1999, Revance has about 64 employees.
Underwriters plan to offer 5 million shares of Revance Therapeutics at $14 to $16 each to raise $75 million. The deal is expected to be priced on Wednesday evening to trade Thursday morning on The NASDAQ Global Market. The joint-lead managers are: Cowen and Piper Jaffray. The co-manager is: BMO Capital Markets.
Prospectus: (1) “Entities and individuals affiliated with certain of our current stockholders have indicated an interest in purchasing an aggregate of up to $16.25 million of shares of common stock in this offering at the price offered to the public.” (Cover Page)
These are just two of 11 biotechs planning on making their debuts in the first week of February.
Worth remembering: This is Wall Street, where anything happen. The same can be said for the IPO calendar.
Looking into next week, the calendar has four IPOs; two are biotech companies. They are expected to raise about $340 million. But more names could pop onto the calendar by the time that Monday, Feb. 10, rolls around.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.