Chimerix Stock Soars As 2 Biotechs Debut Thursday

by: Renaissance Capital IPO Research

Two biotechs, Chimerix (NASDAQ:CMRX) and Omthera Pharmaceuticals (NASDAQ:OMTH), debuted on Thursday, bringing the total to five deals that have priced in April. Chimerix finished the day up 34.2% and Omthera traded down 7.1%. The companies joined U.K.-based shuttle tanker operator KNOT Offshore Partners LP (NYSE:KNOP), up 3.8%, homebuilder Taylor Morrison (NYSE:TMHC), up 4.7%, and Texas-based Independent Bank Group (NASDAQ:IBTX), up 17.9%, in the growing group of April deals. Eight deals remain on the calendar for the rest of April.

Chimerix Stock Rises After Pricing Upsized Deal

Chimerix, which is developing a potent antiviral drug for use in stem cell transplants, raised $102 million by offering 7.3 million shares at $14, within the range of $13 to $15. The Durham, N.C.-based company had originally planned to raise $85 million by offering 6.1 million shares before upsizing the Nasdaq-listed deal by 20%. Aisling Capital agreed to purchase $15 million of shares on the IPO (15% of the deal). Chimerix, which booked $34 million in sales for the 12 months ended Dec. 31,2012, initially filed confidentially on Jan. 30, 2013. Morgan Stanley and Cowen & Company acted as lead managers on the deal.

Omthera Pharmaceuticals Prices Upsized Deal Well Below the Range

Omthera Pharmaceuticals, which has developed a prescription fish oil capsule that reduces triglyceride levels, raised $64 million on Wednesday after pricing its 8 million share IPO at $8. The Princeton, N.J.-based company had originally filed to offer 5.8 million shares at a much higher range of $12 to $14, resulting in a deal size 15% smaller than anticipated. Existing venture backers purchased roughly $17 million (26%) of the IPO, effectively reducing the float to $47 million for the Nasdaq-listed deal. At the $8 offer price, Omthera commands a market cap of $193 million, with roughly $77 million in post-IPO cash. The company, which was founded in 2008, initially filed confidentially on Jan. 25, 2013. BofA Merrill Lynch, Barclays, and Leerink Swann acted as lead managers on the deal.