(jointly with Jason Chew and Juan Pedro Rodriguez Serrate)

To say biotech IPOs have been hot seems like an understatement. The past year has been an open feeding frenzy for biotech companies looking to raise capital on the public markets. It would seem there is significant pent up pent up supply and demand for these offerings, which is hopefully the start of a virtuous cycle where VCs become willing to invest in early stage assets again because the ‘exit’ is now there. Below we highlight some of the newcomers.

Epizyme (EPZM)

Epizyme filed for a $69M IPO. Due to high demand, the offering was up-sized, resulting in a raise of $79.8 million. Shares jumped about 40% on the first day of trading. Epizyme has collaborations with Celgene, Eisai, and GSK. An accumulated deficit of just $52.6 million suggests a company that is focused and well managed.
The company focuses on epigenetics, as its name suggests. More specifically, Epizyme has developed small molecule inhibitors of histone methyl transferases (HMTs), a class of epigenetic enzymes involved in the regulation of gene expression- some of which are oncogenic. The most advanced compound, EPZ-5676 is currently in Phase I; enrollment for a second molecule, EPZ-6438, recently began for a Phase I/II trial.

S1 can be found here. Based on a share price of $27, the current market capitalization is around $746 million (about 27.64 M outstanding shares).

Onconova Therapeutics (ONTX)

Onconova is a clinical stage biopharma whose main asset is Rigosetib, a PI3K, PLK pathway inhibitor. Rigosetib has shown activity in the treatment of MDS and is currently in a pivotal study of high-risk MDS patients. Top-line results are expected in Q4 2013 or Q1 2014. If successful, the company plans on filing for marketing approval with the FDA by the end of 2014. The drug is also in a Phase III study in metastatic Pancreatic cancer as well as Phase II trials in low-risk MDS and head and neck cancer. European rights to the compound are owned by Bayer; Symbio Pharmaceutical holds rights to the Japan and Korean market; Onconova retained U.S. and rest of the world. Under their collaboration agreements with Baxter and SymBio, they are eligible to receive up to $545.5 million in specified clinical/regulatory milestones and up to $280.0 million commercialization milestones, along with tiered royalties, ranging from the low-teens to low-twenties on any future net sales of products from these collaborations.

S1 can be found here. The company intends to raise $75M, but has not disclosed the amount of shares to be offered nor the price range. As of March 31, 2013, they had $67.3 million in cash and cash equivalents.

Receptos Therapeutics (RCPT)

Receptos focuses on the development of small molecule drugs targeting GPCRs. Their lead drug, RPC1063 (S1P1R modulator), is an oral pill for relapsing multiple sclerosis and inflammatory bowel disease. Data from the Phase II portion of a Phase II/III trial are expected in mid-2014. They recently completed a thorough QT study that ruled out the potential for the drug to prolong the QTc interval and secured an SPA with the FDA for Phase III trials.

S1 can be found here. The company started trading on May 9, the current market capitalization is around $323 million (about 17.8M outstanding shares). Receptos raised $73 million in an upsized IPO by offering 5.2 million shares at $14.

Esperion Therapeutics (ESPR)

Esperion Therapeutics is an Ann Arbor-based company that focuses on the discovery and development of HDL, cardiovascular and metabolic disease therapeutics. The company was formed in July 1998, and was acquired by Pfizer in March 2004 in a $1.3 billion cash-for-shares transaction. However in May 2008, Pfizer spun out Esperion to private investors. The company recently announced positive data from a Phase IIa clinical trial of its lead drug ETC-1002 in patients with hypercholesterolemia with a history of intolerance to two or more statins. A Phase IIb study is planned for Q4. They have raised $56.7M since 2008.

S1 can be found here. Based on their $63 million IPO, the market capitalization will be around $206 million(about 14M outstanding shares), or $236 million fully diluted, based on an offering price of $14/share.

Heat Biologics (HTBX)

Heat Biologics was formed in July 2008, by Seed One Ventures and The University of Miami Miller School of Medicine to advance Heatshock and Inhibicor technology developed by researchers at the University. The company focuses on development of its novel “ImPACT” (Immune Pan-Antigen Cytotoxic Therapy) off-the-shelf therapeutic vaccines to combat a wide range of cancers and other diseases.

S1 can be found here. Based on their $18.15 million IPO, the market capitalization will be around $60.3 million (about 5.48M outstanding shares at $11/share).

Cancer Genetics (CGIX)

Cancer Genetics, which offers personalized genomic tests to improve the diagnosis and treatment of cancer, raised $6.9 million by offering 690k shares at $10. Cancer Genetics, which was founded in 1999, booked $4 million in sales over the last 12 months. Our proprietary tests are based principally on our expertise in specific cancer types, test development methodologies and proprietary algorithms correlating genetic events with disease specific information. They have a number of hematology directed assays for diagnosis, prognosis, patient monitoring and risk stratification(MatBA-CLL, MatBA-SLL, MatBA-DLBCL, and MatBA-MCL). Additionally they are working collaboratively with Memorial Sloan-Kettering Cancer Center and the Cleveland Clinic to validate their kidney-cancer microarray, UroGenRA-Kidney.

The Rutherford, NJ-based company trades on the OTC BB under the symbol CGIX. Aegis Capital Corp. and Feltl and Company are the joint bookrunners on the deal.

S1 can be found here.

PTC Therapeutics (PTCT)

PTC Therapeutics is a biopharmaceutical company focused on the development of oral small molecule drugs that target post-transcriptional control processes, for genetic disorders, oncology and infectious diseases. PTC’s lead drug is atalauren, an oral small molecule that overrides nonsense stop translation signals and allows proteins to be correctly translated, for the treatment of genetic disorders, including cystic fibrosis (CF), Duchenne muscular dystrophy (DMD), Becker muscular dystrophy (BMD), and hemophilia associated with defective protein production. The company has raised about $157M since inception.

S1 can be found here. They raised more than $125 million in its IPO and the market capitalization at the time of this writing was $389 million (about 22.2M outstanding shares), or $438 million fully diluted, at $17.54/share.

Prosensa (RNA)

Prosensa Therapeutics, founded in 1997 as spin off from Leiden University, is a biopharmaceutical company that develops RNA-modulating therapeutics to correct gene expression in genetic diseases. Prosensa’s lead product is drisapersen, a subcutaneous formulation of an antisense oligonucleotide-based therapeutic (2-O-methyl antisense RNA oligonucleotide), created using its molecular exon skipping technique to skip exon 51 of the dystrophin gene for the treatment of Duchenne Muscular Distrophy (DMD). The drug is being developed in partnership with GSK. The company has raised $54.5M in three financing rounds.

F1/A can be found here. The company intends to raise $60 million by offering 5M shares at a price range of $11 to $13 giving the company a market capitalization of $417M at $12/share.

bluebird (BLUE)

bluebird bio (formerly Genetix Pharmaceuticals Inc), is based in Cambridge, MA, and Paris, France, was established in 1992. The company develops genetically engineered autologous cell therapies for the treatment of blood disorders and neural degenerative disorders. In September 2010, Genetix changed its name to bluebird bio. Their most advanced drug in the pipeline is Lenti-D a lentiviral gene therapy that will enter a Phase II/III trial in late 2013 for childhood cerebral adrenoleukodystrophy. The compnay has raised $148M since its re-capitalization in 2004. Dave Sobek recently penned a piece on their programs.

S1 can be found here. The company managed to price the stock at $17, above the initial range of $14-$16 and raised $101. The stock shot up 50% in the first day of trading and currently trades at $25.20 or $689.22M market cap fully diluted.

Regado Biosciences (RGDO)

Regado Biosciences Inc is a spin off company from Duke University Medical Center, Durham, NC. The company’s technology facilitates the rational design of drug-antidote pairs against any target accessible to the bloodstream. They plan to initiate a 13,200 subject Phase III trial of REG1 in the second half of 2013. REG-1 is a regimen composed of a Factor IXa inhibitor (pegnivacogin) and its complementary active control agent (anivamersen) for the potential treatment of thrombosis, particularly in patients with acute coronary syndrome undergoing percutaneous coronary intervention (ACS-PCI) and coronary artery bypass grafts (CABG). Regado has raised $154M since inception.

S1 can be found here. Based on their $75 million IPO, the market capitalization will be around $219 million (about 14.6M outstanding shares) or $277M fullydiluted (based on 18.4M shares and $15/share).

Portola Therapeutics (PTLA)

Portola Pharmaceuticals Inc was spun-out from Millennium Pharmaceuticals in 2003 with cardiovascular technology formerly owned by COR Therapeutics, which was acquired by Millennium in February 2002. Portola focuses on the discovery and development of therapeutics for the treatment and prevention of severe cardiovascular diseases, especially thrombosis. Its R&D is particularly focused on well validated targets in order to reduce safety and efficacy risks. The company has raised $306M since its inception.

S1 can be found here. Portola went public on May 22, raised $122 million in an upsized IPO by offering 8.4 million shares at $14.50. The company has a market cap of $719M at the time of this writing.

Intercept Pharma (ICPT)

[Note this actually took place in October 2012.] Intercept is a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat orphan and more prevalent liver diseases utilizing its expertise in bile acid chemistry. Their lead product candidate, obeticholic acid (OCA), is a bile acid analog and first-in-class agonist of the farnesoid X receptor (FXR). They are initially developing this for the second line treatment of primary biliary cirrhosis (PBC) in patients with refractory or intolerant to ursodiol, the only agent for this indication. PBC is a chronic autoimmune liver disease that, if inadequately treated, may eventually lead to cirrhosis, liver failure and death. Intercept owns worldwide rights to OCA outside of Japan and China, where it has out-licensed the product candidate to Dainippon Sumitomo Pharma. In addition to PBC, they are pursuing OCA in other indications like portal hypertension, nonalcoholic steatohepatitis, or NASH, and bile acid diarrhea.

They are conducting a Phase 3 clinical trial of OCA in PBC, named POISE, that will likely serve as the basis for seeking regulatory approval in the United States and Europe. Enrollment completed in December 2012 with 217 patients. Results from the POISE trial to be available in the second quarter of 2014. Additionally, they have an ongoing Phase 2B trial of OCA for the treatment of NASH completed enrollment of 280 patients in November 2012. An interim analysis took place in June 2013 and it will continue to final analysis, which is anticipated in the fourth quarter of 2014. Independently, investigators at the Imperial College of London began an open label Phase 2a trial of OCA as a treatment for bile acid diarrhea, named OBADIAH, whose final results will be available in the fourth quarter of 2013.

S1 can be found here. Based on their $61.7 million IPO, the current market capitalization is around $660 million (about 18.1M outstanding shares).