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Tranzyme (TZYM), a clinical-stage pharmaceutical company, priced its IPO on April 1st, 2011 well below the initial expected range at $4 per share.

Business Overview (from prospectus)

We are a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing novel, first-in-class small molecule therapeutics for the treatment of acute (hospital-based) and chronic gastrointestinal, or GI, motility disorders. GI motility disorders are conditions which disrupt the normal movement of food throughout the GI tract. Our two most advanced product candidates, ulimorelin, which is in Phase 3, and TZP-102, which is entering Phase 2b, are being evaluated for the treatment of predominantly upper GI motility disorders. We believe approximately 20 percent of adults worldwide are affected by conditions these product candidates are designed to treat. While upper GI motility disorders are a highly prevalent group of persistent and recurring conditions, there are currently a limited number of treatment options for patients suffering from these conditions.

Offering: 13.5 million shares at $4 per share. Net proceeds of approximately $35.7 million will be used to fund the development of Phase 2 and Phase 3 clinical trials.

Lead Underwriters: Citi (C)

Financial Highlights:

As the company is in clinical-trial stage, it does not expect to generate any significant revenue unless it commercialize the product candidates post approval.

Competitors

The pharmaceutical industry is characterized by intense competition and rapid innovation. Our potential competitors include large pharmaceutical and biotechnology companies, specialty pharmaceutical and generic drug companies, academic institutions, government agencies and research institutions. We believe the key competitive factors that will affect the development and commercial success of our product candidates are efficacy, safety and tolerability profile, reliability, convenience of dosing, price and reimbursement. We expect that, if approved, ulimorelin will compete directly with alvimopan for the management of POI and metoclopramide, erythromycin and domperidone as a treatment for both gastroparesis and gastric stasis, and that, if approved, TZP-102 will also compete directly with metoclopramide, erythromycin and domperidone as a treatment for gastroparesis.

Additional Resources:

Source: Tranzyme Prices IPO Well Below Expected Range