Entering text into the input field will update the search result below

Sienna's IPO: Partner And Product Concerns

Richard Ashton profile picture
Richard Ashton


  • Sienna Biopharmaceuticals Inc., a company that develops treatments for acne and skin diseases, filed for an IPO with plans to raise about $75 million.
  • Sienna is only developing a few products, which will not be ready for years.
  • Sienna has partners willing to invest, but the lack of interest from bigger pharmaceutical companies is concerning.
  • Investors should become more interested in a recovering biotech market, but ignore Sienna.

Biotech firm Sienna Biopharmaceuticals Inc. (SNNA) filed Monday for an IPO that will raise almost $75 million. A Reuters brief notes that Sienna will go public on the NASDAQ under the symbol SNAA, and that its underwriters include J.P. Morgan, Cowen, and BMO Capital Markets.

The biotech IPO market has improved in 2017 after a dismal 2016, with companies like Myovant Sciences (NYSE:MYOV) and Intellia Therapeutics (NASDAQ:NTLA) raising hundreds of millions of dollars. A rising but not overly hyped market is a good time for investors to take a look at certain biotech companies and get in early on a potentially valuable company.

But that does not mean Sienna is that potentially valuable company. Its partners are concerning, the market for its product currently under clinical development is unclear, and like any other biotech company with bad credit loans, it is going to take years until investors reap rewards. While now is a good time for investors to start evaluating the biotech market, Sienna is not the right product or company.

The Importance of Skin Care

Sienna’s website declares that it aims to discover, develop, and commercialize “topical products in medical dermatology and aesthetics.” This biotech company does not promise some wonder drug to battle a deadly disease like cancer. Instead, its therapies focus on skin care, with an emphasis on treating acne and the autoimmune disease psoriasis.

Like most biotech companies, Sienna does not currently have any treatments on the market. But what is concerning is that Sienna only has three therapies in development. SNA-120, an inhibitor that fights psoriasis, is in Phase 2 development; Sienna plans to initiate a Phase 2b study by the end of 2017. SNA-125 is even farther behind, with additional studies being planned in 2018, and Sienna is merely examining SNA-001’s potential to either fight acne or remove unwanted light-pigmented hair, as

This article was written by

Richard Ashton profile picture
Richard Ashton is a business journalist with a deep fascination with the American markets. He spent several years working as a Risk Specialist at UBS in New York before switching to a career in journalism. Currently he lives and works in Cardiff, UK, where, apart from earning money as a writer, he follows investment news religiously.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.