Seeking Alpha
Profile| Send Message|
( followers)  

AVEO Pharmaceuticals (NASDAQ:AVEO), a biopharmaceutical company developing cancer therapeutics, is expected to price its IPO this week.

Business Overview (from prospectus)

We are a biopharmaceutical company focused on discovering, developing and commercializing novel cancer therapeutics. Our product candidates are directed against important mechanisms, or targets, known or believed to be involved in cancer. Tivozanib, our lead product candidate, is a highly potent and selective oral inhibitor of the vascular endothelial growth factor, or VEGF, receptors 1, 2 and 3. Our clinical trials of tivozanib to date have demonstrated a favorable safety and efficacy profile for tivozanib. We have completed a successful 272-patient phase 2 clinical trial of tivozanib in patients with advanced renal cell cancer, or RCC. In addition, we have identified a number of other promising targets for the development of novel cancer therapeutics using our Human Response Platform. We have preclinical antibody discovery programs underway focusing on targets that appear to be important drivers of tumor growth, including the ErbB3 receptor (partnered with Biogen Idec), the RON receptor, the Notch receptors and the Fibroblast Growth Factor receptors.

Offering: 7 million shares at $13-$15 per share. Net proceeds of approximately $98 million will be used to fund Phase 3 clinical trial of tivozanib, their lead product candidate.

Lead Underwriters: J.P. Morgan (NYSE:JPM), Morgan Stanley (NYSE:MS)

Financial Highlights:

Revenue for the year ended December 31, 2009 was $20.7 million compared to $19.7 million for the year ended December 31, 2008...Research and development expense for the year ended December 31, 2009 was $51.8 million compared to $41.8 million for the year ended December 31, 2008...Net loss was $44.1 million and $32.5 million for the years ended December 31, 2009, 2008, respectively...

Competitors

The biotechnology and pharmaceutical industries are highly competitive. There are many pharmaceutical companies, biotechnology companies, public and private universities, and research organizations actively engaged in the research and development of products that may be similar to our products. A number of multinational pharmaceutical companies, as well as large biotechnology companies, including Roche Laboratories Inc., Pfizer Inc. (NYSE:PFE), Bayer HealthCare AG (OTCPK:BAYRY), and GlaxoSmithKline plc (NYSE:GSK), are pursuing the development or are currently marketing pharmaceuticals that target VEGF, HGF and ErbB3, or other oncology pathways on which we are focusing. It is probable that the number of companies seeking to develop products and therapies for the treatment of unmet needs in oncology will increase.

Additional Resources:

Source: Biotech IPO: AVEO Pharma Develops Cancer Therapeutics