Thu, Aug. 7, 5:17 PM
Mon, Jul. 21, 12:46 PM
Tue, Jul. 1, 12:48 PM
Mon, Jun. 30, 12:46 PM
Mon, Jun. 30, 11:45 AM
- Demonstrating the upside benefits of being a thinly-traded stock, Dicerna Pharmaceuticals (DRNA +21.5%) jumps on turnover of 353K shares, a 2x surge in volume. The upside move is being driven by the news that DCR-PH1, its therapeutic candidate for primary hyperoxaluria type 1 (PH1), inhibits the gene implicated in the pathogenesis of the disease. Investors' enthusiasm might be a bit premature considering that the encouraging results were observed in a preclinical animal model.
- In genetically-modified PH1 mice, researchers noted a 97% reduction in in the HAO1 transcript in the liver after a single dose of DCR-PH1 and a significant reduction in urinary oxalate levels, a key marker of the disease. Urinary oxalate levels returned to near baseline in DCR-PH1-treated mice.
- PH1 is a rare inherited liver disorder that often results in progressive and severe kidney damage.
Mon, Jun. 30, 9:06 AM
Tue, May. 13, 5:54 PM
Mon, Apr. 21, 12:56 PM
- Three late bull market biotech IPOs are shining examples of the truism of sector rotation and the value of diving through the funding window before it closes.
- Ultragenyx Pharmaceutical (RARE -6.4%) debuted on January 31 on robust volume of 4.4M shares. Trading opened at almost 2x the IPO price of $21 ending the day at $42.25. Prices peaked at $69.77 on March 13. Shares trade hands today at $40. The firm still sports a market cap of $1.2B despite no revenues and two products in Phase 2 clinicals.
- Dicerna Pharmaceuticals (DRNA -1.5%) debuted on January 30 on 4M shares. Trading opened at > 2x the IPO price of $15 ending the day at $46 never to return. Today shares exchange hands at $16, a tidy 65% drop from the peak. The company has no revenues and only one product in Phase 1 clinicals.
- Uniqure N.V. (QURE -1%) debuted on February 5 on 4.7M shares. Prices struggled to stay above the IPO price of $17 and eventually succumbed to selling pressure ending the day at $14.61. Prices peaked at $18.75 on February 26. Shares trade hands today at $8.80 representing a 53% haircut from the peak. The company has no product revenues but plans to launch its gene therapy product, Glybera, in selected European countries in H1 2014.
- Biotech ETFs: IBB, XBI, BIB, BBH, FBT, PBE, BIS
Mon, Apr. 14, 11:53 AM
- Recent IPO Dicerna Pharmaceuticals (DRNA +0.6%) demonstrates the value of timing by virtue of its strong debut on January 30. Priced at $15, the new issue gapped up at the open and peaked at $46 on turnover of ~4M shares.
- Shortly thereafter, money flow in the biotech sector turned decidedly negative. DRNA trades today at ~$18.25, down 60% from its opening day high.
- The development stage firm's technology is RNA interference. Its lead products are DCR-M1711 for MYC oncogene-related cancers and DCR-PH1 for primary hyperoxaluria. A Phase 1 clinical trial will start this year for M1711 but won't begin until 2015 for PH1.
- Cash and equivalents at year end were $46.6M, up from $3.7M a year earlier.
- Cash burn was ~$11M in 2013.
- (IPO) (FPX)
Wed, Apr. 2, 12:46 PM
Mon, Feb. 10, 12:42 PM
- Another eight biotechs IPOs raised a combined $502M last week - a new weekly record for the sector amid a rise in the Nasdaq biotech index (IBB) of 70% over the past year. The hot market has companies coming to market at earlier stages of drug development and - in the case of Dicerna Pharmaceuticals (DRNA -2%) which tripled on its first day of trading - without typical restrictions on insiders quickly cashing out.
- Dicerna has yet to enter clinical trials for its liver disease and cancer drugs which typically means less than a 5% chance of them ever coming to market, according to industry analysts. Moreover, the prospectus says majority shareholders are under no lock-up restrictions. “I’ve never seen an IPO in my career where the existing [majority] shareholders . . . were not subject to a lock-up,” says one expert in the business who notes other firms are inquiring about following the Dicerna example. “A 180-day lock-up is one of those check-the-box provisions for investors," says Skadden Arps' Michael Zeidel.
- The underwriters defend the arrangement, noting insiders bought about 50% of the IPO, and not having a lock-up should help with trading liquidity.
- The market may already be stretched - of 14 companies listing so far this year, six are currently below their IPO price.
- Biotech ETFs: IBB, XBI, BIB, BBH, FBT, PBE, BIS
Mon, Feb. 3, 12:51 PM
Fri, Jan. 31, 5:37 PM
Fri, Jan. 31, 10:04 AM
- The hot offering of the day following yesterday's near-triple in Dicerna Pharmaceuticals (DRNA) is Ultragenyx Pharmaceutical (RARE), which raised $121M after pricing its IPO at $21 each vs. an expected range of $14-$17. The company also upsized the offering amount by 1M shares to 5.8M.
- Cara Therapeutics (CARA) raised $55M after selling 5M shares at the low end of the expected $11-$13 range.
- Trevena (TRVN) - which two months ago postponed its offering due to market conditions - raised $64.75M after pricing its IPO at $7 per share.
Thu, Jan. 30, 11:26 AM
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