Biotech/Pharma Companies Look to Market for Capital

    By Donald Zuhn --

Over the past five months, biotech and pharma companies have increasingly turned to the stock market for much needed infusions of capital.  In August, Nashville-based Cumberland Pharmaceuticals snapped a two-year industry dry spell when it conducted an initial public offering (IPO) that raised $85 million (see "Is Biotech/Pharma Beginning to Bounce Back?").  And in October, Talecris Biotherapeutics and Omeros Corp. conducted their own IPOs, raising $950 million and $68.2 million, respectively (see "Biotech/Pharma IPO Binge").  Meanwhile, Inspire Pharmaceuticals and Seattle Genetics managed to raise $115 and $136 million, respectively, in public offerings of their common stock, and Anthera Pharmaceuticals announced plans for a $70 million IPO.

Coupled with the (slow) rebound of venture capital funding, the recent announcements of public offerings and registrations for public offerings are a possible indicator that the biotech/pharma industry has begun to bounce back after suffering through one of the worst economic downturns in history (see "NVCA Study Shows Increase in Third Quarter Venture Funding").  A number of other biotech/pharma companies have joined the IPO fray since our last report in October, including Trius Therapeutic, Ironwood Pharmaceuticals, AVEO Pharmaceuticals, China Nuokang Bio-Pharmaceutical, Rules-Based Medicine, Tengion, Codexis, Med BioGene, Alimera Sciences, and Aldagen.

• In early November, Trius Therapeutics announced that it filed a registration statement with the U.S. Securities and Exchange Commission (SEC) regarding a proposed initial public offering of shares of its common stock.  According to a FierceBiotech report, the San Diego-based biopharmaceutical company, which focuses on the discovery, development, and commercialization of antibiotics, is looking to raise $86 million through its IPO.

• Late last month, Ironwood Pharmaceuticals announced that it filed a registration statement with the SEC relating to the proposed initial public offering of shares of its Class A common stock.  According to a report in The Boston Globe, the Cambridge, MA-based pharmaceutical company has yet to announce the amount it expects to raise via the IPO.

• Earlier this month, AVEO Pharmaceuticals announced that it filed a registration statement with the SEC regarding the proposed initial public offering of shares of its common stock.  The biopharmaceutical company, based in Cambridge, MA, focuses on discovering, developing and commercializing novel cancer therapeutics, including its lead product candidate, Tivozanib, a novel, highly potent and selective oral inhibitor of vascular endothelial growth factor (VEGF) receptors 1, 2 and 3.  According to a report on StreetInsider.com, the company plans to raise $86.25 million through the IPO.

• On December 10th, China Nuokang Bio-Pharmaceutical, which offers a number of therapeutics for bleeding control and hematological, cardiovascular, and cerebrovascular disease diagnosis, treatment, and prevention, began trading on the Nasdaq Global Exchange under the ticker symbol NKBP.  The company's shares, which opened at $8.24, closed at $7.78 today (see StreetInsider.com report).

• Last week, Rules-Based Medicine, which provides protein biomarker products and services based on its Multi-Analyte Profiling (MAP) technology platform, announced that it filed a registration statement with the SEC for an initial public offering of up to $90 million of its common stock (see StreetInsider.com report).

• On Christmas Eve, Tengion announced that it filed a registration statement with the SEC relating to the proposed initial public offering of shares of its common stock.  The regenerative medicine company, based in East Norriton, PA, has developed the Autologous Organ Regeneration Platform in which biocompatible materials and a patient's own cells are combined to regenerate diseased and failing organs and tissues (i.e., neo-organs and neo-tissues).  According to a report in The Philadelphia Inquirer, Tengion is looking to raise $42.25 million in the IPO.

• Yesterday, Codexis announced that it filed a registration statement with the SEC for a proposed initial public offering of shares of its common stock.  According to a Reuters report, the Redwood City, CA company, which makes "super enzymes" for use in pharmaceutical, chemical, and transportation fuel manufacturing and air and water treatment, plans to raise $100 million in the IPO.

• According to a report on StreetInsider.com, Med BioGene filed a registration statement today with the SEC for an initial public offering of its common stock.  Med BioGene, which is based in Vancouver, British Columbia, focuses on the development and commercialization of genomic-based clinical laboratory diagnostic tests.

• In addition to the above reports, Alimera Sciences and Aldagen have each announced that they have refiled earlier IPOs.  According to a FierceBiotech report, Atlanta-based Alimera, which originally pulled a proposed $75 million IPO last spring, has now refiled an IPO seeking to raise $80 million.  A report in The Wall Street Journal indicates that Aldagen, which tabled its earlier IPO in October 2008, has now refiled an IPO seeking to raise $80.5 million.  The Durham, NC-based biopharmaceutical company develops regenerative cell therapies.

• Finally, Vertex Pharmaceuticals announced earlier this month that it had raised $500.5 million in a public offering of its common stock.  The Cambridge, MA-based biotech company focuses on the discovery and development of small molecule drugs for treating viral diseases, cystic fibrosis, inflammation, autoimmune diseases, cancer, and pain.

For additional information regarding this and other related topics, please see:

• "Biotech/Pharma IPO Binge," October 9, 2009
• "Is Biotech/Pharma Beginning to Bounce Back?" August 12, 2009

Comments

[6]

Don tell me one of these which I can invest a couple thousand in which are quality companies and you have confidence in. Then perhaps I'll consider putting a few grand in. Stock names and all are good too.

[Donald Zuhn]

6:

If only I knew which stocks were sure deals.

Thanks for your comments this year, and best wishes for 2010.

Don