|David J. Mazzo, president and CEO of Regado Biosciences|
Regado Biosciences ($RGDO) didn't get an invite to the big biotech IPO party that's been going on at Wall Street for the past few months. After initially setting its sights on a $14-to-$16 range appropriate for an IPO frenzy, Regado recently said it was going to $5 a share--and last night actually priced at $4.
The Basking Ridge, NJ-based biotech raised $43 million by bumping the number of shares on offer to 10.75 million--more than double the 5-million share offering initially expected and well below the $75 million that the developer was looking for to complete a pricey Phase III study. The company will begin trading Thursday morning under the "RGDO" symbol.
Late last year Regado's venture backers put up $51 million for a late-stage study of REG1, which uses two agents--pegnivacogin and anivamersen--to control bleeding during a coronary intervention and open heart surgery. Its researchers believe REG1 can give physicians a tool to manage coagulation, 'dialing' the anticoagulation effect up or down to enable doctors to safely hit a maximum dose for each patient. Pegnivacogin is a Factor IXa inhibitor which can be reversed partially or completely by anivamersen. Faster, safer surgical interventions for this growing patient population comes with the promise of some immediate health benefits as well as the prospect of a reduced number of adverse incidents along with lower hospitalization costs.
But Regado CEO David Mazzo told FierceBiotech that the study would cost about $120 million, which likely leaves the biotech looking for more money if it continues its go-it-alone strategy for Phase III.
Regado's IPO is the 31st such maiden offering for a biotech this year. That compares with an anemic 11 IPOs for all of last year. This is the second weak biotech IPO in a row. Sophiris also experienced trouble as analysts wonder how long the IPO frenzy can last. The question now is whether the party is winding down or just taking an August break in anticipation of more celebrations ahead.
- here's the press release
Special Report: Is the biotech IPO frenzy headed for a crack-up?