AcelRX IPO Prices Well Below Expected Range

| About: AcelRx Pharmaceuticals, (ACRX)

AcelRx (NASDAQ:ACRX), a pharmaceutical company, priced its IPO on February 10, below the original range at $5 per share.

Business Overview (from prospectus)

We are a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of acute and breakthrough pain. We were founded to solve the problems associated with post-operative intravenous patient- controlled analgesia, or IV PCA. Although widely used, IV PCA has been shown to cause harm to patients following surgery because of the side effects of morphine, the invasive IV route of delivery and the inherent potential for programming and delivery errors associated with the complexity of infusion pumps. We are preparing to initiate two Phase 3 clinical trials for our lead product candidate, the Sufentanil NanoTab PCA System, or ARX-01. The system is designed to address these problems by utilizing sufentanil, a high therapeutic index opioid; NanoTabs, our proprietary, non-invasive sublingual dosage form; and our novel handheld PCA device that enables simple patient-controlled delivery of NanoTabs in the hospital setting and eliminates the risk of programming errors.

Offering: 8 million shares at $5 per share. Net proceeds of approximately $27.8 million will be used for funding ARX-01 phase 3 clinical trials.

Lead Underwriters: Piper Jaffray (NYSE:PJC)

Financial Highlights:

To date the company has not generated any revenue and do not expect to receive any revenues from product sales till they obtain regulatory approval.


We are developing ARX-01, the Sufentanil NanoTab PCA System, for the management of acute post-operative pain in adult patients during hospitalization. We believe that ARX-01 would compete with a number of opioid-based treatment options that are currently available. The market for opioids for post- operative pain is large and competitive. The primary competition is the IV PCA pump, which is widely used in the post-operative setting. Leading manufacturers of IV PCA pumps include Hospira Inc. (NYSE:HOS), CareFusion Corporation (NYSE:CFN), Baxter International Inc. (NYSE:BAX), Curlin Medical, Inc. and Smiths Medical. The most common opioids used to treat post-operative pain are morphine, hydromorphone and fentanyl, all of which are available as generics.

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