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Based in Malvern, PA, TetraLogic Pharmaceuticals (NASDAQ:TLOG) scheduled a $90 million IPO on the Nasdaq with a market capitalization of $270 million at a price range midpoint of $14 for Thursday, November 21, 2013.

Ten operating company IPOs are scheduled for this week. The full IPO calendar can be found at IPOpremium.

S-1 filed November 6, 2013
Manager, Joint managers: Oppenheimer & Co., Guggenheim Securities and Needham & Co.

Co-Managers: None

Summary

TLOG is a clinical-stage biopharmaceutical company focused on discovering and developing novel small molecule therapeutics that mimic Second Mitochondrial Activator of Caspases, or SMAC-mimetics, and are designed to cause or enable abnormal cells that are resistant to the body's immune system to self-destruct.

Valuation

Accumulated deficit

($83)

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

annualizing Sept 9 mos

Cap (MM)

Sls

Erngs

BkVlue

TanBV

in IPO

TetraLogic Pharmaceuticals

$270

n/a

-15.6

3.1

3.1

33%

Glossary

Conclusion

TLOG has no revenue and no collaboration partners. It is in the phase 1 and phase 2 clincial trial stage. The rating on TLOG is neutral to avoid.

To put the conclusions and observations in context, the following is reorganized, edited and summarized from the full S-1 referenced above:

Business
TLOG is a clinical-stage biopharmaceutical company focused on discovering and developing novel small molecule therapeutics that mimic Second Mitochondrial Activator of Caspases, or SMAC-mimetics, and are designed to cause or enable abnormal cells that are resistant to the body's immune system to self-destruct.

TLOG's clinical-stage product candidate is currently being tested in Phase 1 and Phase 2 oncology clinical trials for multiple solid tumors and hematological malignancies. TLOG's clinical trials of birinapant have enrolled over 275 subjects.

Clinical trials
TLOG's lead program is colorectal cancer, or CRC, where it has substantially completed a Phase 1/2 clinical trial, and TLOG intends to start a randomized Phase 2/3 clinical trial in the second half of 2014.

Birinapant is also being tested in an ongoing Phase 1/2 clinical trial in various blood cancers. TLOG has started a Phase 1 clinical trial in myelodysplastic syndromes, or MDS, and, upon its completion, intends to start a randomized Phase 3 clinical trial in the second half of 2014.

TLOG also has an open Investigational New Drug Application, or IND, and intends to start a Phase 1/2 ovarian cancer clinical trial in 2013.

Beyond its work in cancer, TLOG is evaluating birinapant and other product candidates in pre-clinical studies as potential antiviral therapeutic agents, with the goal of starting an antiviral clinical program in the first quarter of 2015.

Intellectual property

In November 2003, TLOG entered into an exclusive license agreement with Princeton University, subsequently amended in June 2004, August 2006 and October 2006, which grants TLOG the rights to certain U.S. patents controlled by the university relating to SMAC-mimetic compounds, including birinapant, and a non-exclusive right to certain know-how and technology relating thereto.

In addition to its license of the Princeton University patents, TLOG owns more than 120 patents and patent applications worldwide, all relating to SMAC-mimetics and uses thereof.

Of these, four U.S. patents that TLOG owns have been granted with claims that cover birinapant as a new chemical entity.

In particular, TLOG has issued patents in the U.S. that specifically claim birinapant as a composition of matter, as well as patents that cover a class of compounds that encompass birinapant as a composition of matter and methods of using the class of compounds for inhibiting tumor growth or inducing apoptosis in a cell.

Competition
In the field of SMAC-mimetics, TLOG's principal competitors in clinical development include Curis (Phase 1), Debiopharma (Phase 1) and Novartis (Phase 2).

Companies with earlier stage (discovery or pre-clinical studies) SMAC-mimetic programs include Astex Pharmaceuticals, or Astex, Bristol-Myers Squibb Company, or BMS, and Ensemble Therapeutics.

In addition to companies developing SMAC-mimetics, TLOG competes with pharmaceutical and biotechnology companies that are developing therapies or marketing drugs to treat indications that TLOG is targeting. FDA approved drugs for patients with advanced or metastatic CRC are: 5-fluorouracil, aflibercept, bevacizumab, capecitabine, cetuximab, irinotecan, leucovorin, oxaliplatin, panitumumab and regorafenib.

The companies marketing these drugs include Amgen, Bayer, BMS, Eli Lilly and Company, or Eli Lilly, Novartis, Pfizer Inc., Roche and Sanofi S.A., or Sanofi.

5% stockholders

HealthCare Ventures VII, L.P. 14.08%

Novitas Capital 7.97%

Quaker BioVentures and associates 7.33%

Latterell Venture Partners and associates 5.52%

Clarus Life Sciences II, LP 22.69%

Hatteras Venture Partners and associates 7.53%

Pfizer Inc. 7.56%

NexTech III Oncology, LPCI 5.65%

Use of proceeds

TLOG expects to net $80.8 million from its IPO. Proceeds are allocated as follows:

To advance the clinical and pre-clinical development of birinapant. Specifically, TLOG currently estimates that it will use $50 million of the net proceeds from this offering to fund its CRC program and $20 million to fund its MDS program.

The balance will be used for other clinical programs, working capital and general corporate purposes.

Disclaimer: This TLOG IPO report is based on a reading and analysis of TLOG's S-1 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Source: IPO Preview: TetraLogic Pharmaceuticals