This Week's IPOs Part II: Ocean Power Technologies, OceanFreight, Orexigen Therapeutics, Pharmasset Inc.

Other IPOs expected this week include: Ocean Power Technologies (OPTT), an alternative energy company that generates electricity using ocean waves; OceanFreight (OCNF), a shipping company; Orexigen Therapeutics (OREX), a biotech company that focuses on treatment of central nervous system disorders; and Pharmasset Inc. (VRUS) a biotech company that focuses on virus treatment, specifically hepatitis B and C viruses.

All quotations are from the companies' most recent S-1 filings with links provided.

OCEAN POWER TECHNOLOGIES, INC. (OPTT)
Business Overview (from prospectus)

We develop and are commercializing proprietary systems that generate electricity by harnessing the renewable energy of ocean waves. The energy in ocean waves is predictable, and electricity from wave energy can be produced on a consistent basis at numerous sites located near major population centers worldwide. Wave energy is an emerging segment of the renewable energy market. Based on our proprietary technology, considerable ocean experience, existing products and expanding commercial relationships, we believe we are the leading wave energy company.

Offering: 5.0 million shares at $20.00 - $22.00 per share. Net proceeds of approximately $94.8 million will be used to construct demonstration wave power stations, to fund the continued development and commercialization of the company's PowerBuoy system, to fund the expansion of assembly, test and field service facilities, to expand international sales and marketing capabilities; working capital and general corporate purposes.

Lead Underwriters: UBS Investment Bank, Banc of America, Bear Stearns

Financial Highlights:

Revenues of $1.5 million in the first nine months of fiscal 2007 were relatively unchanged from revenues in the same period of fiscal 2006...Cost of revenues increased by $0.2 million, or 9%, to $2.1 million in the first nine months of fiscal 2007, as compared to $1.9 million in the same period of fiscal 2006...Product development costs increased $1.5 million, or 56%, to $4.1 million in the nine months ended January 31, 2007, as compared to $2.6 million in the same period of fiscal 2006.

OCEANFREIGHT (OCNF)
Business Overview (from prospectus)

We are a newly formed development stage company that was incorporated on September 11, 2006 under the laws of the Republic of the Marshall Islands. Accordingly, we have no history of operations or revenues and we will only produce revenues after the closing of this offering. For the period from inception through December 31, 2006, our net loss was $105,145. We were formed to initially acquire a fleet of seven secondhand drybulk carriers engaged in the seaborne transportation of commodities. We refer to these vessels comprised of six Panamax drybulk carriers and one Capesize drybulk carrier as our Initial Fleet. We have entered into agreements to acquire, subject to the completion of this offering, our Initial Fleet of seven secondhand vessels for an aggregate purchase price of $311.9 million.

Offering: 10.8 million shares at $19.00 - $21.00 per share. Net proceeds of approximately $198.4 million will be used to fund a portion of the aggregate purchase price of the seven vessels and for general corporate purposes.

Lead Underwriters: Banc of America, Cantor Fitzgerald

Financial Highlights:

During the period from September 11, 2006 (the date of our inception) to December 31, 2006, we incurred a net loss of $105,145, representing our general and administrative expenses of $111,640 net of interest income earned of $6,495. General and administrative expenses relate, mainly, to the estimated fair value of executive management services provided to us by Basset, our shareholder, at no charge, and has been reflected as ‘‘Additional paid-in capital’’ in our balance sheet.

OREXIGEN THERAPEUTICS, INC. (OREX)
Business Overview (from prospectus)

We are a biopharmaceutical company focused on the development of pharmaceutical product candidates for the treatment of central nervous system, or CNS, disorders, with an initial focus on obesity. Our strategy involves combining individual generic drugs that have previously received regulatory approval for other indications and, thus, have established post-marketing safety records. We systematically screen these drugs for synergistic CNS activity and combine them into new product candidates that we believe address unmet medical needs and are patentable. We are testing combinations of individual generic drugs in our product candidates in an effort to demonstrate adequate efficacy and safety for potential regulatory approval and have not yet received regulatory approval of any product candidate. Our lead combination product candidates targeted for obesity are Contravetm, which is in a Phase III clinical trial, and Empatictm, which is in a Phase IIb clinical trial. In addition, we plan to continue to screen drugs for synergistic CNS activity and, based on the results, we may advance other potential combination product candidates into clinical trials.

Offering: 6.0 million shares at $11.00 - $13.00 per share. Net proceeds of approximately $65.1 million will be used to fund clinical trials for Contrave and Empatic and other research and development activities and for working capital and general corporate purposes.

Lead Underwriters: Merrill Lynch, JMP Securities

Financial Highlights:

Revenues for the year ended December 31, 2006 were $88,000 and were related to our sublicensed technology to Cypress. Revenues decreased $174,000 as a result of the completion of the collaborative agreement with Eli Lilly as of December 31, 2005...Research and development expenses increased to $22.6 million for the year ended December 31, 2006 from $9.7 million for the comparable period during 2005...General and administrative expenses increased to $5.9 million for the year ended December 31, 2006 from $3.4 million for the comparable period during 2005.

PHARMASSET INC. (VRUS)
Business Overview (from prospectus)

We are a clinical-stage pharmaceutical company committed to discovering, developing and commercializing novel drugs to treat viral infections. Our primary focus is on the development of oral therapeutics for the treatment of hepatitis B virus, or HBV, hepatitis C virus, or HCV and human immunodeficiency virus, or HIV. Our research and development efforts focus on a class of compounds known as nucleoside analogs, which act to inhibit the natural enzymes required for viral replication. We are currently focusing on three product candidates, two of which we are developing ourselves and one of which we are developing with a strategic partner.

Offering: 6.0 million shares at $12.00 - $14.00 per share. Net proceeds of approximately $69.8 million will be used to advance the clinical development program for clevudine into Phase 3 clinical trials.

Lead Underwriters: Banc of America, UBS Investment Bank

Financial Highlights:

Revenues were $8.1 million in the three-month period ended December 31, 2006, and $832,751 in the three-month period ended December 31, 2005...Research and development expenses were $2.6 million in the three-month period ended December 31, 2006, and $2.2 million in the three-month period ended December 31, 2005... General and administrative expenses were $2.1 million in the three months ended December 31, 2006, and $2.0 million in the three months ended December 31, 2005.