Four med tech IPOs were lined up ready to go out last week, but two officially postponed while the other two could get pushed into this week. Another three med techs are also preparing to make their market debut this week, so including the IPOs that didn't get out last week but haven't yet officially postponed--that makes a total of 5 potential med tech IPOs this week: drug metabolic test maker AltheaDx and cardiovascular plaque imaging and treatment company Infraredx, both of which were initially expected last week, as well as Invitae, AutoGenomics and Bellerophon Therapeutics.
Despite the recent stutter, more med techs are jumping into the IPO queue; pulmonary therapeutics and device company SteadyMed just filed with the SEC to raise up to $55 million. Three med tech IPOs priced in January, from Avinger ($AVGR), Entellus Medical ($ENTL) and Presbia ($LENS). Among them, Entellus has been the star so far--the minimally invasive sinus implant player is up by more than one-quarter since it priced above its range in an upsized deal.
Invitae is likely the most highly anticipated of the trio of new potential med tech offerings for this week. Bulge bracket bank JP Morgan is heading up the deal; it's always a hopeful sign when one of the bigger banks takes on a med tech client.
The company hopes to raise $75 million through the sale of 5.4 million shares at a price of $13 to $15 each. That range mid-point also would give the company a market cap of $436 million. Invitae is a consumer-facing genomic testing company. It recently raised a whopping $120 million privately from its investors, which include Baker Brothers Advisors with a 20.6% pre-IPO stake, BlackRock (17%), Thomas, McNerney & Partners (12.5%) and Genomic Health (7.4%) Existing Invitae investors have committed to buying up to $25 million--which would be roughly a third of the proposed deal at the mid-point.
Also up this week is Ikaria spinout Bellerophon Therapeutics. It hopes to raise $60 million for its nitric oxide-based drug-device combinations to treat pulmonary and cardiac diseases. Like with Invitae, existing shareholders have committed to buying up to about one-third, or $20 million, of the IPO. Its investors include New Mountain Capital with a 47.9% pre-IPO stake, Linde (16.1%) and Arch Venture Partners (9.5%) and Venrock (9.5%).
The most tentative proposal among the new companies lined up for an IPO may be diagnostics player AutoGenomics. After a withdrawing its last IPO attempt in February 2013, the company now hopes to raise $45 million by selling 3.8 million shares at a range of $11 to $13 each. That mid-point would value it at $126 million. Its existing investors have committed to buying up to a scant $3 million in the IPO; they mostly include the executives and directors of the molecular diagnostics company.
Radiopharmaceutical company Advanced Accelerator Applications and insulin pump maker Asante Solutions each postponed IPOs last week, rather than to continue to advance into prevailing market headwinds.
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| Treyvent, a drug-device combo for pulmonary arterial hypertension--Courtesy of SteadyMed |
The latest med tech IPO filer, SteadyMed, has lead product Trevyent, a drug-device combo to treat pulmonary arterial hypertension (PAH) based on a formulation of treprostinil. It hopes to be an alternative to Remodulin from United Therapeutics ($UTHR), which it noted costs between $125,000 to $175,000, per patient annually.
It expects to submit an NDA for Trevyent in the first quarter of 2016, with an EMA submission due in the first half. SteadyMed investors include Stark Investments with a 30.9% pre-IPO stake, Samson Venture Partners (12.8%), Deerfield Management (6.7%) and Federated Investors (6.7%).
- here are the SEC filings for Invitae, Bellerophon and AutoGenomics
- and here is the filing for SteadyMed
Special Report: Top 7 life sciences public investors - Deerfield - Baker Brothers