Last evening, Dova Pharmaceuticals (DOVA) increased the size of its IPO offering by 300,000 shares and will now sell a total of 4.42 million shares at $17.00 per share, which is on the top end of the expected range. The stock is set to begin trading today.
Dova Pharmaceuticals is a North Carolina-based pharmaceutical company, which is focused on acquiring, developing, and commercializing drug candidates for diseases typically treated by specialist physicians. The company's initial focus is on addressing thrombocytopenia, which a disorder characterized by a low blood platelet count.
The company's drug candidate—avatrombopag—was acquired from Eisai in March 2016. The drug is an orally-administered thrombopoietin receptor agonist (TPO-RA), which is being developed for the treatment of thrombocytopenia. Two Phase 3 clinical trials have been completed recently to evaluate the effectiveness of the treatment in patients with chronic liver disease who underwent minimally to moderately invasive medical procedures. The drug candidate met primary and secondary endpoints with high statistical significance. The company plans to submit a New Drug Application to the FDA during the third quarter of 2017.
The company estimates that approximately 1.1 million chronic liver disease patients in the United States are affected by thrombocytopenia. Currently, there are no FDA-approved or EMA-approved treatments for thrombocytopenia in the acute setting prior to a medical procedure.
To date, the company has evaluated avatrombopag in more than 20 clinical trials that involved more than 1,100 subjects. The drug has been generally well tolerated.
The company believes that avatrombopag has the potential to be a first-in-class drug treatment of thrombocytopenia in the acute setting and a best-in-class treatment of thrombocytopenia in the chronic setting.
Dova Pharmaceuticals plans to initiate later stage clinical development programs for chemotherapy-induced thrombocytopenia and thrombocytopenia in broader population of patients scheduled to undergo a medical procedure at some point in 2018.
The company plans to use $19 million to fund the commercialization of avatrombopag, if approved by regulators. Approximately $21 million will be used to fund clinical trials of avatrombopag for additional indications beyond its initial indication. Approximately $30 million will be used to repay a portion of the company's obligations under the Eisai note. Remaining proceeds will be used for general corporate purposes and working capital.
During the period between March 24, 2016 and December 31, 2016, the company recorded research & development expenses of $20.84 million and ended 2016 with $28.71 million in cash and cash equivalents. The company ended 2016 with working capital of $20.44 million. At the end of March 2017, the company had $26.65 million in cash and cash equivalents while working capital totaled $1.20 million.
For the three months ended March 31, 2017, the company incurred operating expenses of $5.23 million.