If Eidos Therapeutics'
(EIDX 21.19,+ 4.19, +24.65%) IPO is any indication, it’s shaping up to be a good week for the IPO
market. The IPO priced at the high end of expectations and there are another
six pharmaceutical or biotech IPOs slated to price between tonight and Friday
morning. EIDX's 6.25 mln share deal priced at $17 versus the $15-$17 expected
price range, generating $106.3 mln in gross proceeds.
The lead underwriters on the deal were JP Morgan and BofA Merrill Lynch. The stock is scheduled to open for trading this morning on the Nasdaq.
EIDX is a California-based clinical stage biopharmaceutical company, focused on treating diseases caused by transthyretin (TTR) amyloidosis (ATTR), which is a slow progressive buildup of abnormal deposits of amyloid protein in organs and tissues, most frequently in the peripheral nervous system. Symptoms of this can develop in people ages 20-70.
There are three diseases under the ATTR umbrella. The company estimates that worldwide prevalence of wild-type ATTR cardiomyopathy is 200,000 while the prevalence of mutant ATTR cardiomyopathy is estimated at 40,000. ATTR polyneuropathy worldwide prevalence is estimated at 10,000.
The company believes that cardiomyopathic forms of the disease are significantly underdiagnosed due to non-specific symptoms and a historical reliance on an invasive heart biopsy for diagnosis. The company believes that introduction of an imaging-based diagnostic algorithm will increase the rate of diagnosis.
The company’s approach to stabilizing TTR is supported by genetic evidence and previous clinical trials. The company’s management team responsible for the development of AG10 has developed over 30 molecules through Investigational New Drug Applications more than ten approved drugs.
The company has one product candidate-AG10- which is an orally-administered
small molecule designed to stabilize TTR with the potential to stop the
progression of ATTR.
There are currently no FDA-approved disease-modifying treatments for ATTR.
EIDX has no history of revenue generation and it ended 2017 with a net loss of $11.94 mln, up from a net loss of $2.54 mln in 2016. R&D expenses increased to $9.29 mln from $1.73 mln. The company spent $12.02 mln on operations in 2017, up from $2.39 mln spent in 2016. The company ended 2017 with working capital of $3.81 mln, up from $1.68 mln in 2016.