It seems every time the IPO Calendar starts to run dry, you can count on bankers filling up the pages with healthcare deals. This week is a classic example. Six IPOs are on tap for the first week of October – and five are in the healthcare sector, either biotech or biopharma companies. (We’ll have more on this in a minute.)
The IPO deck has been reshuffled after two unicorns blew up last week. Peloton Interactive (PTON) priced its IPO at $29, the high end of its range. It opened at $27 and closed its opening day at $25.76, down 11.2 percent from its IPO price. The other unicorn was Endeavor Group Holdings (EDR proposed). The IPO never got out the door after it was cut to 15 million shares at $26 to $27, down from 19.35 million shares at $30 to $32. Added to this negative unicorn news, the financial media reported trouble with the pending WeWork (WE proposed) IPO. We will have to wait for the outcome.
But for now, we are back to the biotech IPOs, or what the U.S. Securities and Exchange Commission calls “pharmaceutical preparations” companies. This is an interesting sector. Please note that the Dow Jones U.S. Pharmaceuticals & Biotechnology Index (DJUSPN) has not fared so well lately. Let’s check it out:
The Dow Jones U.S. Pharmaceuticals & Biotechnology Index closed Friday, Sept. 27, 2019, at 734.96, down 7.50 percent from its most recent high at 794.59 on July 3, 2019.
In contrast, the S&P 500 (SP500) closed Friday at 2,961.79, down 1.13 percent from 2,995.82 on July 3.
Nevertheless, there are a few things people look at in the “pharmaceutical preparations” sector. Here’s what they are:
- Are insiders buying shares in the IPO?
- Who are the collaborators?
- What’s the company’s revenue?
Here is a short rundown on all six of this week’s IPOs. Most are scheduled to be priced Wednesday evening to trade Thursday morning. (Wall Street may be more sparsely populated on Monday and Tuesday, when many will be out of the office for the observance of Rosh Hashanah, the Jewish New Year.)
Wednesday evening pricing for Thursday trading:
ADC Therapeutics SA (ADCT proposed), based in Switzerland, is a clinical-stage oncology-focused biotechnology company pioneering the development of highly potent and targeted antibody drug conjugates for patients suffering from hematological malignancies and solid tumors.
- Are insiders buying shares of the IPO? – Yes, $115 million of the $200 million being offered
- Who are the collaborators? Genmab A/S and MedImmune
- What’s the company’s revenue? $2.9 million for the 12 months ended June 30, 2019
Aprea Therapeutics (APRE proposed), based in Boston, is a clinical-stage biopharmaceutical company. The company focuses on developing and commercializing novel cancer therapeutics that reactivate mutant p53 tumor suppressor protein.
- Are insiders buying shares of the IPO? – No
- Who are the collaborators? Moffitt and Groupe Francophone des Myelodysplasies
- What’s the company’s revenue? None
Frequency Therapeutics (FREQ proposed), based in Woburn, Massachusetts, is a biotechnology company. The company discovers and develops small molecule drugs to treat patients with skin disorders, muscle regeneration disorders and gastrointestinal diseases.
- Are insiders buying shares of the IPO? – No
- Who are the collaborators? Astellas Pharma
- What’s the company’s revenue? None
Viela Bio (VIE proposed) based in Gaithersburg, Maryland, is a clinical-stage biotechnology company. The company develops and commercializes drugs to treat patients with autoimmune and severe inflammatory diseases.
- Are insiders buying shares of the IPO? – Yes, $50 million of a $150 million IPO
- Who are the collaborators? Hansoh Pharmaceutical Group
- What’s the company’s revenue? $20 million
MetroCity Bankshares (MCBS), based in Doraville, Georgia, is a bank holding company. The company, through its subsidiaries, offers banking products and services such as savings accounts, debit and credit cards, business and personal loans, mortgages, cash management, lines of credit and online banking. Note: This is a public offering – not an IPO. The company’s stock trades on the OTC Market Group’s OTCQX Market under the symbol “MCBS.” This is a public offering of 1.9 million shares to be listed on the NASDAQ.
Thursday evening pricing for Friday trading:
Monopar Therapeutics (MNPR proposed), based in Wilmette, Illinois, operates as a biopharmaceutical company. The company focuses on developing drugs and drug combinations to improve clinical outcomes for cancer patients.
- Are insiders buying shares of the IPO? – No
- Who are the collaborators? – None
- What’s the company’s revenue? None
(For more information about these companies, please check the IPO Profiles on IPOScoop.com.)
Week of Oct. 7th
For the second week of October, there is just one deal on the IPO Calendar – and it’s another biotech. More deals could make their way onto the calendar, though, after the SEC’s filing window opens again for business on Monday morning.
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.