Bellus Health Seeks $60 Million U.S. IPO

Summary

• BELLUS Health said it intends to raise $60 million from the sale of its common stock in a U.S. IPO.
• The firm is advancing programs to treat chronic cough and pruritus.
• There is no existing investor support for the deal, a negative signal for a life science company seeking public investment.
• I'll be watching the IPO from the sidelines.
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Quick Take

BELLUS Health (BLU) has filed to raise gross proceeds of $60 million from a U.S. IPO, according to an F-10 registration statement.

The firm is developing therapeutics for chronic cough and other hypersensitization disorders.

BLU is in the middle of Phase 2 trials for its lead program but there is no existing investor support for the IPO.

Company And Technology

Laval, Canada-based BELLUS was founded in 2010 to focus on developing therapeutics for chronic cough and other chronic pruritus conditions associated with atopic dermatitis.

Management is headed by President, CEO and Director Roberto Bellini, who has been with the firm since its inception and was previously Vice-President at Picchio Pharma.

The company’s lead product candidate is BLU-5937, a twice daily oral small-molecule drug, designed as a highly-selective inhibitor of the P2X3 receptor, a clinically validated target linked to hypersensitivity, and currently in development for the treatment of chronic cough and chronic pruritus, or chronic itch.

Management claims that the company enrolled its first patient in an ongoing Phase 2 clinical trial of BLU-5937 for the treatment of refractory chronic cough and anticipates to announce top line data in mid-2020.

Below is the status of the firm’s drug development status:

Additionally, management plans to initiate a Phase 2 clinical trial of BLU-5937 for the treatment of chronic pruritus associated with atopic dermatitis [eczema] in 2020.

The company has exclusive worldwide development and commercialization rights to BLU-5937 in all indications with composition of matter patent coverage for BLU-5937 secured in all major pharmaceutical markets until 2034, namely in the US, Europe, Japan and China.

Chronic cough lasts more than eight weeks and could pose a significant adverse impact on patients’ quality of life while, according to management, there are estimated to be more than 26 million adults in the US suffering from the

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