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Based in New York, NY, Stemline Therapeutics (NASDAQ:STML) has scheduled a $42 million IPO with a market capitalization of $128 million at a price range mid-point of $12 for Wednesday, August 1, 2012.

Three other IPOs are scheduled for the week of July 30. Full IPO calendar available here.

STML filed an updated S-1 July 19, 2012.

UNDERWRITERS
Manager: Joint Managers: RBC Capital Markets/ Oppenheimer
Co Managers: JMP Securities

SUMMARY
STML is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing and commercializing proprietary therapeutics that target both cancer stem cells, or CSCs, and tumor bulk.

As of July 19, 2012, STML had eight full-time employees. The chairman, CEO and president owns 52% pre-IPO. STML's proforma net worth pre-IPO is $483,000, and the company has an accumulated deficit of $7.2 million, so it is small on a comparison basis versus other clinical stage biopharma IPOs.

Compare
Valuation Ratios

Mrkt

Price /

Price /

Price /

Cap (MM)

Sales

Earnings

BookValue

Stemline Therapeutics

$128

none

-27

3.5

Hyperion Therapeutics (NASDAQ:HPTX)

$145

none

-3

3.3

Cempra (NASDAQ:CEMP)*

$175

n/a

-13

3.2

Rib-X Pharmaceuticals (RIBX)**

$130

n/a

-3

2.8

Verastem (NASDAQ:VSTM)

$219

none

-8

2.0

Durata Therapeutics (NASDAQ:DRTX)

$144

n/a

-5

1.5

*CEMP IPO'd Feb 2, 2012 at $6. It recently traded at $8.32
DRTX IPO'd July 18 at $9 and is trading around $9 now.
**postponed

CONCLUSION
STML is worth watching based on recent developments, see below. It is, however, priced (at the price range mid-point) at a premium to its named competitor, Verastem (VSTM).

STML is definitely worth watching at this stage, from the sidelines.

BUSINESS
STML is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing and commercializing proprietary therapeutics that target both cancer stem cells, or CSCs, and tumor bulk.

STML believes that it is developing the most clinically advanced pipeline of anti-CSC therapeutics, and that it holds a broad portfolio of CSC-focused intellectual property, establishing the company as a leader in the CSC field.

Among the therapeutic candidates in STML's portfolio, the company is currently developing two clinical-stage product candidates, SL-401 and SL-701, for which it holds global marketing rights.

PRODUCT CANDIDATES
The lead indication for SL-401, a biologic targeted therapy, is acute myeloid leukemia, or AML. The lead indications for SL-701, a therapeutic cancer vaccine comprised of synthetic peptides, are pediatric and adult brain cancer.

In completed Phase 1/2 clinical trials, both SL-401 and SL-701 have demonstrated single agent activity, including durable complete responses, or CRs, and longer overall survival, or OS, for patients compared with that achieved in the past with traditional therapies.

STML plans to advance SL-401 into a registration-directed randomized Phase 2b clinical trial to treat adult relapsed or refractory AML patients who failed two previous treatments (i.e., third-line AML) with OS as the primary endpoint.

STML plans to advance SL-701 into a pivotal Phase 2b clinical trial to treat pediatric patients with malignant glioma. In addition, STML plans to advance SL-701 into a Phase 2b clinical trial in adult second-line glioblastoma, or GBM.

STML has developed a proprietary discovery platform, StemScreen®, for the discovery of novel CSC-targeted compounds, from which STML discovered several of its product candidates, and which the company believes may be instrumental in the discovery of additional new therapies targeting a wide range of cancer types.

RECENT DEVELOPMENTS
Intellectual Property Developments
Two significant intellectual property developments occurred with respect to SL-701:

On March 21, 2012, STML entered into a license agreement with the University of Pittsburgh that grants the company the right to use, and reference for regulatory applications, clinical data, information and know-how generated by the University in its prior clinical trials of SL-701.

Without this license, STML would not have had the right to use these data in its own IND with the FDA.

On March 30, 2012, STML entered into a license agreement with the University that grants the company the right to practice patents claiming the use of EphA2 epitopes, one of the two primary active agents in SL-701.

Both of these developments significantly improved the value of the SL-701 program

Clinical, Operational and Infrastructure Developments
Additional clinical trial results for SL-701 were released by the investigator-sponsored researcher in April 2012. Such results were presented at the Annual Meeting of the American Association for Cancer Research (AACR) on April 2, 2012.

These results were positive and reinforcing of previous results. The two clinical trials involving SL-701, administered to both adults and children with advanced brain cancer, were selected for late-breaking presentations at the AACR. The research team presenting the results concluded that SL-701 demonstrated both immunological and clinical activity in children with malignant glioma, and was well tolerated and demonstrated immune responses in adult patients with low-grade glioma.

COMPETITION
The field of CSCs (cancer stem cell) is a new area of cancer biology with the potential to fundamentally alter the approach to oncology drug development.

Two significant public market developments occurring after May 24, 2012 are indicative of the current market perception of CSC-focused companies and have indirectly increased the value of STML's common stock: The post-initial public offering performance of Verastem, Inc. and the filing for initial public offering by OncoMed Pharmaceuticals, Inc. in May 2012.

Verastem IPO'd January 26, 2012 at $10 and recently traded around $9.63

SHAREHOLDERS, PRE-IPO
Ivan Bergstein, M.D., 53% (President, CEO, Chairman)
Madoff Family LLC, 10% (yes, as in "Bernie")
Neuberger Berman Athyrium LLC, 9%

EMPLOYEES
As of July 19, 2012, STML had eight full-time employees, four of whom hold Ph.D. or M.D. degrees

USE OF PROCEEDS
STML expects to net $42.2 million from its IPO. Proceeds are allocated as follows:

To advance SL-401 into a registration-directed randomized Phase 2b clinical trial to treat adult AML patients as a third-line treatment. The current estimate for the cost associated with completing the trial is $20 million.

To advance SL-701 into a pivotal Phase 2b clinical trial to treat pediatric patients with malignant glioma. STML also plans to initiate a Phase 2b clinical trial of SL-701 in adult second-line GBM. The current estimate for the aggregate cost associated with completing these trials is approximately $6 million.

The remaining proceeds will be used to fund early stage clinical trials, research and development activities, working capital, capital expenditures and other general corporate purposes.

Disclaimer: This STML IPO report is based on a reading and analysis of STML's S-1 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Source: IPO Preview: Stemline Therapeutics (STML)