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IPO Alert : XBiotech Inc (NASDAQ:XBIT).

|Includes: Xbiotech (XBIT)

IPO Alert : XBiotech Inc (NASDAQ:XBIT). XBiotech is a clinical-stage biopharmaceutical company engaged in discovering and developing "True Human™" monoclonal antibodies for treating a variety of diseases. True Human™ monoclonal antibodies are those which occur naturally in human beings-as opposed to being derived from animal immunization or otherwise engineered. We believe that naturally occurring monoclonal antibodies have the potential to be safer and more effective than their non-naturally occurring counterparts. While focused on bringing our lead product candidate to market, we also have developed a "True Human™" pipeline and manufacturing system.

From their registration statement , you can learn that an investment in their common stock involves a high degree or risk.

They are subject to a number of risks of which you should be aware of before you decide to buy their common stock.

They have a history of losses. As of September 30, 2014, the company accumulated deficit of $87 million. They expect to continue to incur losses for the foreseeable future, and they have never achieved or sustained profitability.

    They will likely need to obtain additional capital to continue operations.

    Their success depends on the regulatory approval and commercialization of Xilonix™ and any future product candidates.

    They are subject to regulatory approval processes that are lengthy, time consuming and unpredictable; we may not obtain approval for Xilonix™ or any of the future product candidates from the FDA or foreign regulatory authorities.

  It is difficult and costly to protect their intellectual property rights.Even if this offering is successful, they will need to raise significant additional funding, which may not be available on acceptable terms, if at all. Failure to obtain this necessary capital when needed may force them to delay, limit or terminate the product development efforts or other operations.They currently have no source of product revenue and may never become profitable .The future success is dependent on the regulatory approval and commercialization of Xilonix™ and any of the other product candidatesThey do not have any products that have gained regulatory approval.Even if they are able to generate revenues from the sale of Xilonix™ or any other product candidates that may be approved, they may not become profitable and may need to obtain additional funding to continue operations.Because the results of earlier clinical trials are not necessarily predictive of future results, Xilonix™ which is currently in Phase III clinical trials, or any other product candidate they advance into clinical trials, may not have favorable results in later clinical trials or receive regulatory approval.Xilonix™ or the other product candidates may cause undesirable side effects or have other properties that could delay or prevent their regulatory approval, limit the commercial profile of an approved label, or result in significant negative consequences following any marketing approval.They have never marketed a drug before, and if they are unable to establish an effective sales force and marketing infrastructure, or enter into acceptable third-party sales and marketing or licensing arrangements, they may be unable to generate any revenue.Product liability lawsuits against them could cause us to incur substantial liabilities and to limit commercialization of any products that they may develop.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.