Print this Page

Capital Markets

The ability to access capital has a tremendous impact on speed to market as well as the advancement of new technologies in the pipeline. IPOs, like M&A, also offer investors an opportunity to realize the returns on their capital and other invested resources.

In 2011, nine U.S. life sciences companies executed IPOs, raising approximately $472 million. As of the third quarter for 2012, 14 U.S. life sciences companies completed IPOs, raising almost $950 million.

CaliforniaCalifornia companies accounted for half of the IPOs in 2012. These seven companies raised $315.5 million.

 

Twelve of the 14 U.S. companies are in drug discovery and development. The only preclinical company is Regulus Therapeutics, a microRNA company that was co-founded with technology from Alnylam and Isis.

Company Ticker* State IPO Raised (M) Company Description
Cempra CEMP NC $6 $50.4 Cempra develops next-generation antibiotics for drug resistant infections, including MRSA. Taksta (CEM-102) is in mid-stage clinical development for a number of different clinical applications to treat MRSA infections. Solithromycin (CEM-101) is in Phase 2 studies for community-acquired bacterial pneumonia. CEMP is also investigating other indications for CEM-101 including treating gastric motility disorders, endocrine diseases, chronic inflammatory ailments and cancer.
Chemocentryx CCXI CA $10 $45 Chemocentryx develops autoimmune, diabetes and cancer drugs. CCXI partnered with GlaxoSmithKline for CCXI’s lead candidate, Traficet-EN or vercirnon, which is in a number of Phase 3 studies for treating Crohn’s disease. GSK also optioned the CCXI’s CCX354, a CCR1 inhibitor that completed last year a Phase 2 study in rheumatoid arthritis. CCXI also has CCX168, a C5a receptor inhibitor in a Phase 2 study to treat anti-neutrophil cytoplasmic antibody-associated vasculitis.
Durata Therapeutics DRTX NJ $9 $56.25 Durata Therapeutics is a pharmaceutical company focused on the development and commercialization of therapeutic solutions for physicians and providers to advance patient care in infectious disease. DRTX is currently enrolling patients in two global Phase 3 clinical trials with its lead product candidate, dalbavancin, under investigation for the treatment of patients with acute bacterial skin and skin structure infections, or abSSSI, caused by susceptible Gram-positive bacteria.
Globus Medical GMED PA $12 $100 Globus Medica is developing and manufacturing spinal implants and products to advance spinal surgery. To date GMED has released over 100 products and hasover 30 more in various stages of development.
Hyperion Therapeutics HPTX CA $10 $50 Hyperion develops novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. HPTX’s Ravicti (HPA-100) is under FDA review for urea cycle disorders. HPTX is also investigating Ravicti in patients with hepatic encephalopathy and completed a Phase II study earlier this year.
Intercept ICPT NY $15 $75 Intercept has a novel drug called obeticholic acid (OCA), a first-in-class agonist of the farnesoid X receptor. OCA is in late-stage development as a second-line treatment for primary biliary cirrhosis, which causes toxic levels of bile to accumulate in the liver and is considered an orphan disease. Dainippon Sumitomo partnered with ICPT in a deal with $15 million upfront and $300 million in milestones for rights to OCA to treat liver diseases in China and Japan. ICPT also has an ongoing alliance with Servier, France’s largest privately held drugmaker, for development of drugs to treat Type II diabetes.
Kythera KYTH CA $16 $70.4 Kythera’s ATX-101 is in late-stage development of a synthetic version of a component of human bile called sodium deoxycholate, which breaks down dietary fat. The therapy could help patients remove double chins without going under the knife. Kythera expects top-line results of a key trial in the U.S. and Canada in mid-2013. Bayer has partnered for license rights outside the U.S. and Canada for ATX-101.
Merrimack Pharmaceuticals MACK MA $7 $98 Merrimack is discovering, developing and commercializing innovative medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer. MACK currently has five targeted therapeutic oncology candidates in clinical development and a sixth expected to enter clinical development by the end of 2012. MACK’s most advanced candidate, MM-398, is in a Phase 3 study as a second-line treatment for pancreatic cancer and a Phase 1 and 2 study for colorectal cancer. MACK has partnered with Sanofi to co-promote MM-121 in the U.S. MM-121 is in a number of Phase II studies for multiple types of solid tumors.
Puma Biotech NYSE: PBYI CA $3.75 $60 Puma Biotechnology Inc., located in Los Angeles, California, is a biopharmaceutical company. The company is focused in-licensing and developing therapeutics for cancer treatment. PBYI is initially focused on developing neratinib for patients with HER2-postive breast cancer.
RegulusTherapeutics RGLS CA $4 $80.9 Regulus is a microRNA company that was co-founded with technology from Alnylam and Isis. RGLS is developing anti-miRs to correct the dysregulation caused by disease and return cells to their healthy state. Regulus is currently optimizing anti-miRs in five distinct programs in fibrosis, hepatitis C atherosclerosis and oncology, Regulus has drug-research alliances with AstraZeneca, GlaxoSmithKline and Sanofi.
Supernus Pharmaceuticals SUPN MD $5 $50 Drug delivery technology for extended release of CNS drugs. Supernus was formed through the 2005 buyout of Shire’s drug delivery business. SUPN received FDA tentative approval in June 2012 on Trokendi XR, the company’s extended-release version of the generic epilepsy med Topamax from Johnson & Johnson. The company alsoreceived FDA approval in October 2012 of Oxtellar, a once-daily version of the epilepsy drug called oxcarbazepine.
Tesaro TSRO MA $13.50 $81 Tesaro was founded in 2010 and in-licensed a pipeline of cancer drugs. The lead drug in TSRO’s pipeline is rolapitant, a NK-1 receptor agonist in Phase 3 development for preventing nausea and vomiting in cancer patients on chemotherapy. TSRO plans to report top-line data from in the second half of 2013. TSRO’s pipeline also includes niraparib, a PARP inhibitor from Merck in Phase 1 testing against solid tumors, and TSR-011, a next-generation ALK inhibitor from Amgen in preclinical development for treating non-small cell lung cancer.
Trovagene TROV CA $8 $9.2 Trovagene specializes in cost-effective, rapid, non-invasive molecular diagnostic assays. TROV provides clinicians laboratory testing services for the detection of pathogens or mutations that can cause particular diseases. TROV presently offers multiplex DNA sequencing based testing panels in the area of women’s health and is developing a range of urine-based assays to detect cancer.
Verastem VSTM MA $10 $55 Verastem is discovering and developing novel drugs that selectively target cancer stem cells. Cancer stem cells are an underlying cause of tumor recurrence and metastasis. VSTM is translating discoveries in cancer stem cell research into new medicines for the treatment of major cancers such as breast cancer.
Total $881.15

* All are listed on NASDAQ, except Puma Biotech, which is listed on NYSE
** Highlighted companies are located in California

2011 Life Science IPOs

Because the capital markets are still weak, public companies continue to depend on alternative investment vehicles. For California companies, private investment in public equities (PIPE) deals in 2012 almost doubled compared with 2011 ($401M compared with $217M) and equaled 2008 levels ($403M).

Company Ticker State IPO Raised ($M)
Sagent Pharmaceuticals SGNT IL $16 $86.25
Endocyte ECYT IN $6 $75
Fluidigm FLDM CA $13.50 $75
Horizon Pharma HZNP IL $9 $49.5
Tranzyme Pharma TZYM NC $4 $48
Pacira Pharmaceuticals PCRX NJ, CA $7 $42
BG Medicine BGMD MA $7 $40.3
AcelRx Pharmaceuticals ACRX CA $5 $40
Kips Bay Medical KIPS MN $8 $16.5
ZELTIQ Aesthetics Inc ZLTQ CA $13 $91
Total $563.55

PIPE deals, California companies (value in USD M)

PIPE Deals

Private companies are also pursuing alternatives to IPOs, such as reverse mergers to access public markets. California companies, who have disclosed values of reverse mergers, have not been able to access as much capital in 2011 and 2012 compared with 2008-2010. Organovo, a 3-D bioprinting company, was successful in February of this year with this strategy to list on OTC markets.

Reverse Mergers, California companies (value in USD M)

Reverse Mergers

Permanent link to this article: http://www.californiabiomedreport.com/capital-markets/