Biotech news this week was dominated by a number of healthcare and biotech related IPOs, including Parnell Pharmaceuticals Holdings Ltd (NASDAQ: PARN), Signal Genetics Inc (NASDAQ: SGNL), ZS Pharma Inc (NASDAQ: ZSPH), Ardelyx Inc (NASDAQ: ARDX) and Zafgen Inc (NASDAQ: ZFGN) with Kite Pharma Inc (NASDAQ: KITE), Microlin Bio Inc (NASDAQ: MCLB) and Syndax Pharmaceuticals Inc (NASDAQ: SNDX) presumably set to debut today (Note: See This Week's Biotech IPOs: Two Losers and One Winner So Far (PARN, SGNL & ZSPH)):
Biotech IPO Summary Performance. It was a mixed performance bag for the biotech IPOs so far this week with Parnell Pharmaceuticals Holdings Ltd sinking 19.5% on its first day of trading, Signal Genetics Inc falling 9.10%, ZS Pharma Inc surging 22%, Ardelyx Inc surging 53% and Zafgen Inc surging 23.44%.
Parnell Pharmaceuticals Holdings Ltd Debuts Well Below Its Expected Price Range. Australia based Parnell Pharmaceuticals Holdings Ltd, which is a fully integrated pharmaceutical company focused on developing, manufacturing and commercializing innovative animal health solutions, debuted at $10 a share (well below its expected range of $17 to $19).
Signal Genetics Inc Develops Cancer Diagnostics. Signal Genetics Inc, which develops and sells cancer diagnostics, raised $9 million by offering 850,000 shares at $10. Signal Genetics Inc is an exclusive licensee to the world-renowned research on multiple myeloma (MM) performed at the University of Arkansas for Medical Sciences (UAMS) and the company plans to expand its test menu over the next 12 to 18 months by adding tests that are used to help manage MM patients.
ZS Pharma Inc Has a Track Record of Successful Fundraisings. ZS Pharma Inc, is developing a therapy for hyperkalemia, a chronic kidney disease affecting more than 26 million Americans, raised $107 million from the sale of 5.9 million shares. Trading opened at an $18 share price, above the initial range of $15 to $17, and the stock closed at $28.38 a share, reflecting robust demand with the total number of shares sold being more than 900,000 above target. ZS Pharma Inc has already received a $2 million grant from the Texas Emerging Technology Fund in 2010 and followed by $46 and $55 million capital infusions in 2012 and March of this year, respectively, with investors including Novo A/S, RA Capital, Adage Capital, Sofinnova Ventures, Alta Partners, Devon Park Bioventures, 3×5 Special Opportunity Fund, Salem Partners and RiverVest. In addition, ZS Pharma Inc is working towards regulatory submissions for ZS-9 to both the FDA and the European Medicines Agency in the first half of 2015.
Ardelyx Raises Money For Its unpartnered Products. Ardelyx Inc, which has potential treatments for treat inflammatory bowel disease, the kidney disease hyperkalemia and blood fluid overload, sold 4.3 million shares at $14 apiece to take in about $60 million to help its unpartnered pipeline (specifically its preclinical candidates and gut-based discovery platform) to progress. Ardelyx Inc's most advanced candidates are already tied up in 9-figure deals with AstraZeneca and Sanofi – meaning the company is getting a steady stream of milestone cash from those efforts.
Zafgen is Working on an Obesity Drug. Zafgen, which is addressing the unmet need of severely obese patients by bringing beloranib to market, sold 6 million shares at $16 each to raise $96 million. However and as I noted in an earlier article (see: Zafgen Inc (ZFGN) IPO: Another Small Cap Obesity Drug Stock Joins a Crowded Field (ARNA, ETRM, OREX & VVUS)), the drug would be the company's only potential product right now while the performance of obesity drug stocks has been mixed for investors.
Small Cap TNI BioTech's Spinoff Plus Other News. In other small cap biotech news, TNI BioTech, which is focused on the development, marketing and distribution of opioid-related immunotherapies, has posted a Form 10-Q, but the bigger announcement came in early May about how its board of directors had approved a plan to spin off wholly-owned subsidiary, Cytocom, Inc - an entity established to operate TNIB's drug development business. After the spin off, Cytocom will initially focus on developing low dose naltrexone (LDN) and methionine-enkephalin (MENK) while TNI BioTech will continue to retain the rights to certain assets and will focus on manufacturing, distribution and marketing of these LDN and MENK therapies for the treatment of both humans and animals in certain territories. TNI BioTech shareholders will receive one common share of Cytocom for every one share of TNIB common stock held as of 5:00 p.m., Eastern Time, on July 15, 2014. It should be mentioned that the company spent last year developing a manufacturing and distribution network for the sale of LDN into emerging markets and has had discussions with the FDA and EMA to begin clinical trials in the United States.
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