June’s final week closed out the IPO second quarter and first half of 2015 with a pre-Fourth of July explosion – a moonshot. Seres Therapeutics (MCRB) popped Friday for an opening-day gain of 185.6 percent. This was the fourth IPO to do so this year.
Note: An IPO moonshot is any deal that ends its opening day with a gain of 100 percent or more.
Seres priced its IPO of 7.4 million shares at $18 each Thursday evening. The stock opened at $31.36 Friday morning. Seres went public ABOVE its original filing range of 6.25 million shares at $15 to $17 each. The stock closed Friday at $51.40, UP 185.6 percent from its IPO price.
Seres is a microbiome therapeutics platform company developing a novel class of biological drugs. The company is focused on using its platform to develop Ecobiotic microbiome therapeutics to treat dysbiosis – a microbial imbalance – in the colonic microbiome. The company’s leading drug candidate is “designed to prevent recurrences of Clostridium difficile, a debilitating infection of the colon,” according to its prospectus.
To The Moon, Alice!
You don’t have to be a fan of “The Honeymooners” to get the gist of this trend. The other three IPO moonshots of 2015 were:
Aduro Biotech priced its IPO of 7 million shares at $17 each on Tuesday evening, April 14. The IPO opened at $32 per share Wednesday morning, April 15, and closed at $42, UP 147.1 percent from its initial offering price. The deal was priced above its original filing range of 5 million shares at $14 to $16 each. Aduro Biotech closed Friday, June 26, at $32.71 per share, UP 92.4 percent from its offering price.
Aduro Biotech is a clinical-stage immuno-oncology company focusing on the development of first-in-class technology platforms designed to stimulate robust and durable immune responses against cancer. Immuno-oncology encompasses a class of therapies that leverage the patient’s immune system to slow the growth and spread of, or eliminate, tumor cells. The company’s lead product candidate is in a randomized controlled Phase 2b clinical trial involving patients with late-stage metastatic pancreatic cancer.
Shake Shack (SHAK)Shake Shack priced its IPO of 5 million shares at $21 each on Thursday evening, Jan. 29. The IPO opened at $47 per share Friday morning, Jan. 30, and closed at $45.90, UP 118.6 percent from its initial offering price. The deal was priced above its original filing range of 5 million shares at $14 to $16 each. Shake Shack closed Friday, June 26, at $62.40 per share, UP 197.1 percent from its offering price.
Shake Shack is a New York City-based modern “roadside” burger stand serving a classic American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine.
Spark Therapeutics priced its IPO of 7 million shares at $23 each on Thursday evening, Jan. 29. The IPO opened at $45.10 per share Friday morning, Jan. 30, and closed at $50, UP 117.4 percent from its initial offering price. The deal was priced above its original filing range of 5.5 million shares at $15 to $17 each. Spark Therapeutics closed Friday, June 26, at $59.87 per share, UP 160.3 percent from its initial offering price.
Spark Therapeutics is a gene therapy company engaged in developing one-time, life-altering gene therapy treatments to transform the lives of patients and re-imagine the treatment of debilitating diseases.
A Low-Key Start To Q3
Don’t look for any moonshots from this week’s calendar, according to the IPO professionals. Bankers expect to get five deals out the door; one is a carryover from last week. Most are expected to be priced Tuesday evening, June 30, to trade Wednesday morning, July 1st. That business starts the third quarter and the second half of 2015. From all indications, the IPO market’s third quarter will get off to a quiet start.
Two deals, though, have attracted some attention: ConforMIS (CFMS – proposed) and Teladoc (TDOC – proposed).
No Two Knees Are Alike
ConforMIS, based in Bedford, Massachusetts, designs and manufactures customized knee implants for each patient’s unique anatomy for all stages of osteoarthritis of the knee.
Formed in 2004, ConforMIS reported a net loss of $14.3 million on revenues of $14.7 million for the three months ended March 31, 2015, versus a net loss of $12.7 million on revenues of $10.8 million for the same period a year ago.
Bankers are expected to price 9 million shares of ConforMIS at $14 to $16 each on Tuesday evening to trade Wednesday morning on the NASDAQ Global Select Market.
(For more information, please click here: ConforMIS)
The Doctor Will “See” You NowTeladoc, based in Purchase, New York, believes it is the first and largest telehealth medical consulting company in the United States. The company delivers on-demand healthcare anytime, anywhere, via mobile devices, the Internet, video and phone to over 11,000 members from over 1,100 board-certified physicians and health professionals who treat a wide range of conditions and cases. The healthcare professionals are available 24 hours a day, seven days a week, 365 days a year, at a cost of $40 per visit.
Formed in 2002, Teladoc reported a net loss of $12.7 million on revenues of $16.5 million for the three months ended March 31, 2015, versus a net loss of $2.3 million on revenues of $9.4 million for the same period a year ago.
Bankers are expected to price 7 million shares of Teladoc at $15 to $17 each on Tuesday evening to trade Wednesday morning on the New York Stock Exchange.
(For more information, please click here: Teladoc)
There is nothing as yet on the calendar for the week of July 6, but anything can happen. The calendar has been known to fill up quickly on Monday mornings.
Editor’s Note: We will not be publishing next week. To our IPOScoop.com network, have a happy July 4th weekend!
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.