Friday, July 31, 2015
- After pricing its IPO at $15 (well below an initial $19-$21 range), TerraForm Global (NASDAQ:GLBL) opened at $14 and is now at $14.16, down 5.6%.
- The SunEdison (NYSE:SUNE) emerging markets solar/wind/hydro project YieldCo is valued at $2.53B. It sold 45M shares through the offering (gross proceeds of $637M), less than the 56.6M it originally planned to sell. Another 4.5M are being sold through a concurrent private placement.
- SunEdison is off sharply. The company's Q2 report arrives on Aug. 6.
- Prospectus. IPO analysis.
- Brisbane, CA-based Aimmune Therapeutics (Pending:AIMT) is set for its IPO of 8,333,333 shares of common stock at $14 - 16.
- The clinical stage biopharmaceutical firm is developing therapeutics to treat food allergies, including those that are potentially life-threatening such as peanut. According to the company, its unique approach, called Characterized Oral Desensitization Immunotherapy ((CODIT)), is designed to desensitize patients to food allergens using rigorously characterized biologics, defined treatment protocols and tailored support services. The desensitization is achieved by the patient ingesting increasing amounts of the allergen, precisely controlled, over a period of months.
- Its lead product candidate is Fast Track- and Breakthrough Therapy-designated AR101 for the treatment of peanut allergy, a condition affecting 5M Americans including 2M children. A Phase 3 trial should commence soon.
- 2014 Financials ($M): Operating Expenses: 11.1 (+134.0%); Net Loss: (11.1) (-130.5%); Cash Burn: (4.0) (-104.9%).
- Balmain, Australia-based Benitec Biopharma (Pending:BNTC) is set for its IPO of 5M American Depositary Shares (ADSs). Each ADS represents 20 ordinary shares. The company currently trades on the Australian Securities Exchange under the symbol "BLT." The estimated price per ADS will be ~$13.00.
- The clinical stage biotech is developing a proprietary therapeutic technology platform called DNA-directed RNA interference (ddRNAi) that combines gene silencing and gene therapy. Its goal is to provide a "one shot" cure for a variety of diseases via the long-term silencing disease-causing genes. Its pipeline programs target hepatitis C, hepatitis B, age-related macular degeneration, drug-resistant non-small cell lung cancer and oculopharyngeal muscular dystrophy.
- 2014 Financials (A$M): Total Revenues: 1.4 (-6.2%); Operating Expenses: 8.9 (+79.1%); Net Loss: (7.0) (-101.8%); Cash Burn: (9.3) (-239.2%).
Thursday, July 30, 2015
- SoulCycle files for an IPO on the NYSE.
- The trendy exercise chain reported revenue of $111.95M and net income of $25.33M last year.
- 23 of the company's 38 indoor cycling studios are in New York City or the broader NYC metro area.
- The offering price and amount of shares SoulCycle will list are undetermined at the moment. $100M is posted as the maximum aggregate amount.
- SoulCycle acknowledged in the filing that it's benefited from celebrities riding in its studios (see InStyle's list). The S-1 lists a loss of celebrity ridership as a risk.
- SEC Form S-1
- The toymaker sector has another publicly traded stock in its group after Spin Master debuted today in Canada.
- The company raised C$220M ($169.0M) through an IPO without the owners giving up much control due to the dual class of shares.
- Spin Master is listed on the Toronto Stock Exchange under the symbol TOY. Shares are up 1.4% from where they priced.
- Toy watch: Jakks Pacific (JAKK +1.4%) and Hasbro (HAS -1.1%) have generated large share price gains this year, while Mattel (MAT +1.7%) has lagged. All three companies are seen benefiting from an upcoming slate of studio blockbusters heavy on characters that can be turned into toys. Spin Master is more game-focused than driven by characters, but has signed a new licensing deal to distribute Teletubbies products.
- IPO vTv Therapeutics (NASDAQ:VTVT) prices its IPO of 7,812,500 shares of common stock at $15 per share. Underwriters over-allotment is an additional 1,171,875 shares. Net proceeds will fund the Phase 3 STEADFAST study assessing azeliragon for the treatment of Alzheimer's disease, the clinical development of other product candidates, working capital and general corporate purposes.
- Trading commences today.
Wednesday, July 29, 2015
Tuesday, July 28, 2015
- NantKwest (NASDAQ:NK) is up a respectable 33% on its first day of trading. Turnover is over 7M shares.
- Investors may have expected a more robust first day pop. They appear to be taking their disappointment out on NantWorks collaborator Sorrento Therapeutics (SRNE -12.2%). Shares are off on double normal volume.
Monday, July 27, 2015
Friday, July 24, 2015
- Vizio, best known to many for its aggressively-priced TVs, has filed to go public under the symbol VZIO. The IPO underwriters: BofA/Merrill, Deutsche, Citi, BMO, Piper, Wells Fargo, and Roth. (prospectus).
- In addition to TVs, Vizio's product line includes sound systems and accessories. The company is headquartered in Irvine, CA, but its products are generally manufactured in China and Mexico. It sold 7.08M TVs (+13% Y/Y) and 1.48M audio systems (+79% Y/Y) in 2014. NPD estimates Vizio respectively had 35% and 22% of the U.S. smart TV and sound bar markets last year.
- 2014 revenue totaled $3.14B (+5% Y/Y), and net income $45M. 1H15 revenue totaled $1.34B (+6% Y/Y), and net income $25.9M.
- Jerusalem, Israel-based Intec Pharma (Pending:NTEC) is set for its U.S. debut of 4.5M ordinary shares. The company currently trades on the Tel Aviv Exchange under the symbol "INTP." The U.S. price will be equal to the local price which was NIS 31.57 ($8.36) on July 14 per the prospectus.
- The clinical stage biopharmaceutical firm develops drugs based on its proprietary Accordion Pill platform technology, an oral drug delivery system that is designed to improve the efficacy and safety of existing medicines by increasing the time they are retained in the stomach. This has the potential to significantly improve the performance of drugs that have a narrow absorption window, poor solubility, act locally in the stomach/upper GI tract or present adverse effects when reaching the distal parts of the GI tract.
- Its lead product candidate is Accordion Pill Carbidopa/Levodopa for the treatment of Parkinson's disease (PD) symptoms in patients with advanced PD. A Phase 3 clinical trial is on tap for later this year.
- Its second product candidate is Accordion Pill Zaleplon for the treatment of insomnia. A Phase 3 study is the next step in the development process but a start date has yet to be determined.
- 2014 Financials ($M): Operating Expenses: 5.4 (+15.4%); Net Loss: (5.1) (-10.8%); Cash Burn: (4.3) (-39.3%).
- Amplify Snacks Brands (BETR) files for a $225M IPO.
- The Chicago-area company plans to offer 15M shares in a range of $14 to $16. The mid-point of the range values the maker of SkinnyPop popcorn at $1.1B.
- Amplify more than doubled sales to $132.4M last year. Adjusted EBITDA margin was reported to be 44.5%.
- The brand has generated a lot of consumer interest off its position as a "no artificial anything" snack. Products are sold through thousands of retail chains.
- Foodeducate rates the basic popcorn product an A-.
- SEC Form S-1
- Six weeks after Forbes reported Square is planning an IPO and may have already filed, Bloomberg reports a confidential filing has happened.
- Square, whose mobile card readers, iPad point-of-sale system, and related payment services are used by many a small business, was valued at $6B in a 2014 funding round. The company processed $30B worth of transactions last year.
- Square has been reported to be mulling an IPO since 2013. Its plans were reportedly put on hold last year as it worked to grow non-transaction processing revenue streams (lending, invoicing tools, payroll processing, etc.) and narrow its losses.
- Update: CNBC reports Goldman will lead the IPO, and that Morgan Stanley has also been hired.
- Cardiff-by-the-Sea, CA-based NantKwest (Pending:NK), yet another spin-out from Patrick Soon-Shiong, M.D., is set for its IPO of 7M shares of common stock at $20 - 23.
- The clinical stage immunotherapy firm has developed a proprietary natural killer (NK) cell line, called activated NK, with which it plans to create "off-the-shelf" cell-based therapies to treat cancer, infectious diseases and inflammatory conditions. NK cells are the immune system's first line of defense due to their innate ability to rapidly seek and destroy abnormal cells.
- Activated NK (aNK) cells lack inhibitory receptors but retain activation receptors that enable the targeting and killing of diseased cells. They incorporate high affinity CD16 receptors which bind to externally administered monoclonal antibodies such as Herceptin, Erbitux and Rituxan. This creates the ability to deliver larger payloads of therapeutic compounds.
- 2014 Financials ($M): Operating Expenses: 6.2 (+132.9%); Net Loss: (6.2) (-234.2%); Cash Burn: (5.4) (-999%).
- Devon, PA-based Zynerba Pharmaceuticals (Pending:ZYNE) is set for its IPO of 3M shares of common stock at $13 - 15.
- The specialty pharmaceutical firm develops next-generation synthetic cannabinoid therapeutics administered transdermally. Its top product candidates are ZYN001 for fibromyalgia and peripheral neuropathic pain and ZYN002 for refractory epilepsy, Fragile X syndrome and osteoarthritis.
- ZYN001 is a prodrug of THC (delta9-tetrahydrocannabinol) that is formulated in a transdermal patch. A prodrug is an inactive or less active form of a drug that is converted to the active form through the normal metabolic process.
- ZYN002 is a synthetic cannabidiol formulated as a permeation-enhanced gel for transdermal delivery.
- 2014 Financials ($M): Revenues: 0.8 (-14.2%); Operating Expenses: 6.5 (+310.4%); Net Loss: (5.8) (-620.9%); Cash Burn: (3.5) (-999%).
- High Point, NC-based vTv Therapeutics (Pending:VTVT) is set for its IPO of 7,812,500 shares of common stock at $15 - 17.
- The clinical stage biopharmaceutical firm develops oral small molecule drugs to fill significant unmet medical needs. Its pipeline includes Phase 3-stage azeliragon (TTP488) for the treatment of Alzheimer's (AD), Phase 2b-stage TTP399 and Phase 2-stage TTP273 for type 2 diabetes, the anti-inflammatory HPP737 and HPP971 for chronic diseases associated with oxidative stress.
- Azeliragon has a novel mechanism of action for treating AD. It inhibits the receptor for advanced glycation endproducts (RAGE), an immunoglobulin supergene family member that is upregulated in AD. RAGE-ligand interactions lead to sustained inflammatory states that play a key role in chronic diseases like AD, inflammation and diabetes. RAGE is believed to contribute to AD pathology by promoting vascular leakage and the influx of peripheral amyloid-beta into the brain. A Phase 3 trial, STEADFAST, is currently enrolling up to 800 patients. The estimated study completion date is March 2018.
- Cautionary note: the company has a complicated corporate structure. Its dominant shareholder is MacAndrews & Forbes, wholly owned by leveraged-buyout dealmaker Ronald O. Perelman, which controls 76% of the voting power of the outstanding common stock.
- 2014 Financials ($M): Operating Expenses: 30.4 (-17.4%); Net Loss: (36.1) (+25.1%); Cash Burn: (30.8) (+26.1%).
Thursday, July 23, 2015
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