Week Ahead: Biotechs Strike Back With 4 IPOs

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Includes: CPP, NTLA, ONS, SBPH, TPB
by: Renaissance Capital IPO Research

After seven IPOs in a row outside the healthcare sector, four biotechs will attempt to price their IPOs in the week ahead, all with insider support. Looking more broadly, the next two weeks could see an increased number of launches if companies in the pipeline wish to complete their deals before the Memorial Day holiday.

Four Biotechs Set to Price IPOs in the Week Ahead
Issuer
Business
Symbol
Exchange
Deal Size
$mil
Price Range
Shares Filed
Lead Manager(s)
Intellia Therapeutics
Cambridge , MA
NTLA
Nasdaq
$85 $16.00 - $18.00
5,000,000
Credit Suisse
Jefferies
Leerink Partners
Preclinical biotech developing gene editing therapies using CRISPR/Cas9 technology.
Oncobiologics
Cranbury, NJ
ONS
Nasdaq
$60 $11.00 - $13.00
5,000,000
Jefferies
Barclays
Developing biosimilars of blockbuster drugs Humira and Avastin.
Cancer Prevention Pharmaceuticals
Tucson, AZ
CPP
NYSE MKT
$25 $12.00 - $14.00
1,923,076
Aegis Capital Corp.
Developing treatments for colorectal cancer risk factors.
Spring Bank Pharmaceuticals
Hopkinton, MA
SBPH
Nasdaq
$15 $12.00 - $14.00
1,154,000
Dawson James
Developing small molecule therapies for hepatitis B and viral diseases.
Click to enlarge

Intellia Therapeutics (NASDAQ:NTLA) - Concurrent with the IPO, Intellia will raise $55 million in a separate private placement from collaboration partners Regeneron Pharmaceuticals ($50mm) and Novartis ($5mm). Its closest competitor, Editas Medicine (NASDAQ:EDIT), went public earlier this year; it has returned 107% since the IPO. Insiders have indicated for 35% of the deal.

Oncobiologics (Pending:ONS) - This biotech expects to begin Phase 3 trials on its Humira and Avastin biosimilars in 2016. These two drugs combined for nearly $20 billion in sales in 2014 and are projected to grow to over $22 billion by 2020. Insiders have indicated for 33% of the deal.

Cancer Prevention Pharmaceuticals (NYSE:CPP) - This micro-cap biotech is looking to raise money to fund the completion of its Phase 3 trial for its lead candidate; it originally filed terms in early February. Insiders have indicated for 20% of the deal.

Spring Bank Pharmaceuticals (NASDAQ:SBPH) - Spring Bank postponed its original deal in mid-March, which was set to raise $40 million. It has since changed underwriters, decreased the deal size by over 60% and increased its insider buying to 53% from 25%.

IPO Pipeline Update
Turning Point Brands (NYSE:TPB), maker of tobacco products under the Zig-Zag, Stoker's and various other brands, set terms to raise $76 million the week of May 9th. Landcadia Holdings (LCAHU), a blank check company formed by the CEOs of Landry's and Leucadia, filed and set terms to raise $300 million.

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 4% year-to-date, while the S&P 500 is up 1%. Renaissance Capital's IPO ETF (NYSEARCA:IPO) tracks the index, and top ETF holdings include Alibaba (NYSE:BABA), Synchrony Financial (NYSE:SYF) and Citizens Financial Group (NYSE:CFG). The Renaissance International IPO Index is down 2% year-to-date, compared to +2% for ACWX. Renaissance Capital's International IPO ETF (NYSEARCA:IPOS) tracks the index, and top ETF holdings include NN Group and Aena S.A.