Seeking Alpha
Research analyst, IPOs, long/short equity
Profile| Send Message| ()  

Two biotechs, Chimerix (CMRX) and Omthera Pharmaceuticals (OMTH), debuted on Thursday, bringing the total to five deals that have priced in April. Chimerix finished the day up 34.2% and Omthera traded down 7.1%. The companies joined U.K.-based shuttle tanker operator KNOT Offshore Partners LP (KNOP), up 3.8%, homebuilder Taylor Morrison (TMHC), up 4.7%, and Texas-based Independent Bank Group (IBTX), up 17.9%, in the growing group of April deals. Eight deals remain on the calendar for the rest of April.

Chimerix Stock Rises After Pricing Upsized Deal

Chimerix, which is developing a potent antiviral drug for use in stem cell transplants, raised $102 million by offering 7.3 million shares at $14, within the range of $13 to $15. The Durham, N.C.-based company had originally planned to raise $85 million by offering 6.1 million shares before upsizing the Nasdaq-listed deal by 20%. Aisling Capital agreed to purchase $15 million of shares on the IPO (15% of the deal). Chimerix, which booked $34 million in sales for the 12 months ended Dec. 31,2012, initially filed confidentially on Jan. 30, 2013. Morgan Stanley and Cowen & Company acted as lead managers on the deal.

Omthera Pharmaceuticals Prices Upsized Deal Well Below the Range

Omthera Pharmaceuticals, which has developed a prescription fish oil capsule that reduces triglyceride levels, raised $64 million on Wednesday after pricing its 8 million share IPO at $8. The Princeton, N.J.-based company had originally filed to offer 5.8 million shares at a much higher range of $12 to $14, resulting in a deal size 15% smaller than anticipated. Existing venture backers purchased roughly $17 million (26%) of the IPO, effectively reducing the float to $47 million for the Nasdaq-listed deal. At the $8 offer price, Omthera commands a market cap of $193 million, with roughly $77 million in post-IPO cash. The company, which was founded in 2008, initially filed confidentially on Jan. 25, 2013. BofA Merrill Lynch, Barclays, and Leerink Swann acted as lead managers on the deal.

Source: Chimerix Stock Soars As 2 Biotechs Debut Thursday