U.S. IPO Week Ahead: 2 Health Care Companies Scheduled For A Slow Week

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Includes: ADV, AKCA, RDFN, YOGA
by: Renaissance Capital IPO Research

Two health care deals are on the IPO calendar to raise a combined $134 million in the week ahead. Both companies had originally planned to price in the final week of June.

US IPO Calendar

Issuer
Business

Symbol
Exchange

Deal Size($m)
Market Cap($m)

Price Range
Shares Filed

Bookrunners

Akcea Therapeutics
Cambridge, MA

AKCA
Nasdaq

$125
$692

$12 - 14
9,620,000

Cowen & Company,
Stifel,
Wells Fargo

Late-stage biotech developing therapies for rare lipid disorders.

Co-Diagnostics
Salt Lake City, UT

CODX
Nasdaq

$9
$75

$6.35 - 6.75
1,300,000

WallachBeth Capital,
Network 1 Financial

Commercializing diagnostic equipment for DNA tests.

Akcea Therapeutics (NASDAQ:AKCA), which was originally scheduled for June 29, is now hoping to price its $125 million IPO in the week ahead. Akcea, a spinoff of Ionis Pharmaceuticals (Nasdaq: IONS; market cap $6.4 billion), is a late-stage biotech developing therapies for lipid disorders. The Cambridge, MA-based company has completed a Phase 3 trial for a rare lipid disease and plans to leverage a successful launch to target broader cardiovascular diseases. Additionally, partner Novartis will invest up to $50 million in a concurrent private placement at the IPO price if Akcea raises over $100 million in its offering.

Co-Diagnostics (NASDAQ:CODX), which is commercializing diagnostic equipment for DNA tests, is also expected to price a $9 million deal. The Salt Lake City, UT-based company plans to begin generating revenue this year.

More IPOs on the horizon

While the first two weeks of July were slow with no offerings and only two scheduled IPOs, a number of expected launches could build out the back half of the month. Companies that could price in the coming weeks include yoga studio chain YogaWorks (NASDAQ:YOGA), marketing firm Advantage Solutions (ADV) and online real estate company Redfin (NASDAQ:RDFN).

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 18.7% year-to-date, ahead of the S&P 500, which is up 7.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Ferrari (NYSE:RACE) and First Data (NYSE:FDC). The Renaissance International IPO Index is up 17.1% year-to-date, while the ACWX is up 12.5%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include ABN AMRO Group and Worldpay.