The one that we're going to focus on here is Aptinyx (APTX 20.11, +4.11, +25.69%), as it drew some of the strongest interest from investors. Not only was its IPO up-sized from 5.5 mln shares to 6.4 mln, but it also priced above expectations at $16 vs. the $14-$15 expected price range. In all, then, it generated $102.4 mln in gross proceeds -- $22.6 mln, or, 28% more than anticipated.
The lead underwriters on the deal included JP Morgan, Cowen, Leerink Partners, and BMO Capital. Shares are set to open for trading later this morning on the Nasdaq.
APTX is a clinical-stage biopharmaceutical company developing proprietary synthetic small molecules for the treatment of brain and nervous system disorders. More specifically, it is focusing on targeting N-methyl-D-asparate receptors (NMDArs), which are critical to communications between neural cells. The ability of this neural cell communication to adapt and change is known as synaptic plasticity; it plays an imperative role in learning and memory processes. Abnormalities in learning and memory processes are implicated in multiple disorders of the brain and nervous system, including cognitive impairment, PTSD, chronic pain, and depression.
The company is currently studying its first product candidate, NYX-2925, in two Phase 2 studies of chronic pain -- the first is for diabetic peripheral neuropathy (DPN), and the second is for fibromyalgia. It expects to report top-line data from these studies in the first half of 2019. In a Phase 1 study, NYX-2925 was well-tolerated, noting no drug-related serious adverse events, and demonstrated a predictable, dose-dependent, and linear pharmacokinetic profile with no accumulation after multiple daily doses. Across numerous and various preclinical models of neuropathic pain, APTX has observed robust, rapid, and long-lasting analgesic effects of NYX-2925.
The development of NYX-2925 in painful DPN has been granted Fast Track designation by the FDA. The company is currently studying NYX-2925 in a Phase 2 study of approximately 300 subjects with painful DPN across numerous U.S. sites. It is also conducting an exploratory efficacy and biomarker study of NYX-2925 in subjects with fibromyalgia.
Its second product candidate, NYX-783, has been evaluated in Phase 1 clinical development. It intends to develop NYX-783 for the treatment of post-traumatic stress disorder, or PTSD, and plans to initiate a Phase 2 clinical study in 2H18.
APTX intends to develop NYX-783 for the treatment of PTSD, which has been granted Fast Track designation by the FDA. To date, in the Phase 1 study, NYX-783 has been well-tolerated with no drug-related serious adverse events and demonstrates a predictable, dose-dependent, and linear PK profile with no accumulation after multiple daily doses.
As a clinical stage pharmaceutical company, APTX can expect that its current financials won’t be the primary focus of potential investors. For the 3 months ended March 31, 2018, it generated only $2.5 mln in collaboration and grant revenue. Meanwhile, Research and Development costs increased by $3.5 mln to $12.2 mln. As of March 31, 2018, it had cash and equivalents of $82.4 mln. It believes that its available funds will be sufficient to fund operations for at least the next 12 months, without giving effect to any anticipated proceeds from this offering.
APTX opened for trading earlier this morning at $17.40, above its $16 pricing point. Currently, shares fluctuate at about 25% above that pricing point.