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Based in San Diego, Regulus Therapeutics (NASDAQ:RGLS) scheduled a $51 million IPO with a market capitalization of $239 million at a price range mid-point of $11 for Wednesday, October 3, 2012.

Eight IPOs scheduled for the week of October 1. Full IPO calendar available here.

S-1A filed September 7, 2012.

Manager, Joint Managers: Lazard; Cowen; BMO.
Co Managers: Needham; Wedbush; PacGrow Life Sciences.

SUMMARY
RGLS is targeting a new class of drugs. AstraZeneca (NYSE:AZN) with a $59 billion market capitalization expects to buy $25 million in a concurrent private placement with the IPO.

CONCLUSION
Yes, AZN's concurrent investment with the IPO is impressive.

RGLS does generates some revenue from collaboration agreements with AZN, Sanofi (NYSE:SNY) with a $116 billion market capitalization, and GlaxoSmithKline plc (NYSE:GSK) with a $115 billion market capitalization.

However, RGLS is still showing considerable losses. Therefore, IPOdesktop believes RGLS has great potential but at the current time prefers to watch from the sidelines.

In terms of pricing RGLS is priced at 3.1 times book value which is in the general biopharma range.

Valuation Ratios

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

annualizing June 2012 qtr

Cap (NYSE:MM)

Sales

Earnings

BookValue

TangibleBV

in IPO

Regulus Therapeutics

$239

18

-24

3.1

3.2

21%

Financial term glossary

BUSINESS
RGLS is a biopharmaceutical company focused on discovering and developing first-in-class drugs that target microRNAs to treat a broad range of diseases.

microRNAs are recently discovered, naturally occurring ribonucleic acid, or RNA, molecules that play a critical role in regulating key biological pathways.

Formed in 2007 when Alnylam Pharmaceuticals, Inc., or Alnylam, and Isis Pharmaceuticals, Inc., or Isis, contributed significant intellectual property, know-how and financial and human capital to pursue the development of drugs targeting microRNAs pursuant to a license and collaboration agreement.

RGLS believes it has assembled the leading position in the microRNA field, including expertise in microRNA biology and oligonucleotide chemistry, a broad intellectual property estate, key opinion leaders and disciplined drug discovery and development processes.

RGLS believes microRNAs may be transformative in the field of drug discovery and that anti-miRs may become a new and major class of drugs with broad therapeutic application much like small molecules, biologics and monoclonal antibodies.

USE OF PROCEEDS
RGLS expects to net $43 million from its IPO from the sale of 4.5 million shares. RGLS also expects to receive $25.0 million from the sale shares in the concurrent private placement to AstraZeneca.

Proceeds are allocated for preclinical and clinical development.

Source: IPO Preview: Regulus Therapeutics