IPO Update: Sun BioPharma Presents IPO Terms

Aug. 21, 2020 1:09 PM ETSun BioPharma, Inc. (SNBP)

Summary

  • Sun BioPharma has filed to raise $10 million in an IPO.
  • The firm is developing a treatment for pancreatic cancer.
  • SNBP is thinly capitalized and researching an area that has proven difficult for major pharmas to make much progress on.
  • While I wish the firm well, I'll watch the IPO from the sidelines.
  • Looking for more investing ideas like this one? Get them exclusively at IPO Edge. Get started today »

Quick Take

Sun BioPharma (NASDAQ:SNBP) intends to raise $10 million from the sale of its common stock in an IPO, according to an amended registration statement.

The company is developing a treatment candidate for pancreatic cancer.

SNBP is a thinly capitalized firm operating in a very difficult area of research, where major pharma firms have invested far greater sums and failed to develop effective treatments, so I'll pass on the IPO.

Company & Technology

Waconia, Minnesota-based Sun was founded to develop a single polyamine metabolic inhibitor for patients with pancreatic cancer.

Management is headed by Co-Founder, President, Executive Chairman and CEO Michael Cullen M.D., MBA, who was previously chief medical officer of MGI Pharma.

Below is a brief overview video of pancreatic cancer:

Source: Osmosis

The firm's candidate, SBP-101, a first-line therapy for metastatic pancreatic ductal adenocarcinoma, is being tested in combination with gemcitabine and nab-paclitaxel.

Management reported positive tolerability results along with a 62% objective response rate, "which is more than double contemporary response rates for Gem + Nab along."

Below is the current status of the company’s drug development:

Source: Company Website

Investors in the firm have invested at least $45 million to-date.

Market & Competition

According to a 2017 market research report by Grand View Research, the global market for pancreatic cancer treatments is expected to reach a value of $4.2 billion by 2025.

Key elements driving this expected growth are a growing population aged 65 to 75 years, the peak period of incidence for pancreatic cancer, as well as growing tobacco consumption, along with smoking, higher obesity rates and growing awareness of treatment options.

Also, pancreatic cancer will likely become the second most common cause of cancer deaths in the U.S. by 2030.

The North America region produced the largest revenue share by region in 2015.

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This article was written by

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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.

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