By Diane Alter, Contributing Writer, Money Morning•
IPO Calendar 2014: This year is forecast to be a record year for initial public offerings (IPOs).
Over the January to March period, some 250 to 300 new issues will launch, according to professional services firm EY - a number not seen since the start of the 2008 financial crisis.
And biotech companies are the hottest issues to date.
Since 2000, no two-week period saw more than six new biotech issues - until now.
Last week, five of nine companies priced were biotechs. This week, eight of 10 companies hitting the market are biotechs.
Moreover, a pair of companies last week became the only two biotechs since 2000 to double in price on their first day of trading.
Dicerna Pharmaceuticals Inc. (Nasdaq: DRNA), which develops treatments for cancer and liver diseases, popped 207% when it debuted Jan. 30. Ultragenyx Pharmaceuticals Inc. (Nasdaq: RARE), focusing on genetic disease treatments, followed with a 101% one-day surge on Jan. 31.
Following are eight offerings from the red-hot biotech sector on this week's IPO calendar:
Argos Therapeutics focuses on the development and commercialization of fully personalized immunotherapies for the treatment of cancer and infectious diseases. One of the company's products in development is currently being fully funded by the National Institutes of Health under a $40 million contract. Based in Durham, N.C., Argos hopes to raise $69 million in a 4.3 million share offering. The price range is $13 to $15. Shares will launch Friday, Feb. 7, on the Nasdaq with the ticker ARGS. Underwriters include Stifel Nicholas, Piper Jaffray, and JMP Securities.
Auspex Pharmaceuticals Inc. is a "cutting edge company devoted to providing elegant and effective solutions to long standing healthcare issues," according to the company's statement. Pipeline treatments include therapies for movement disorders such as Tourette's syndrome. The La Jolla, Calif.-headquartered company will offer 5.5 million shares at $10 to $12 each. Stifel Nicolas and BMO are lead underwriters. Shares started trading Wednesday, Feb. 5, at $12. At last check, shares were up $2.95, or 2.45%, at $14.95.
Biocept Laboratories, which develops and markets cancer diagnostic tests, plans to raise $20 million in a 1.8 million share offering at a price range of $10 to $12. Founded in 1997, the San Diego-based company listed on the Nasdaq Wednesday, Feb. 5, under the ticker BIOC. Aegis Capital is the sole bookrunner on the deal. The stock began trading at $10 a share. The day's range was $7.32 to $10.02. At 3 p.m., the stock was trading around $9.39.
Eleven Biotherapeutics,based in Cambridge, Mass., hopes to raise $69 million with a 4.3 million share offering. It has three potential drugs in its pipeline and plans to bring the most advanced one, a treatment for dry eye disease, to late-stage clinical trials early this year. Then it plans for later to mid-stage trials for allergic conjunctivitis. Underwriters include Citigroup, Cowen Securities, and Leerik Swan; price range is $13 to $15. Shares will start trading Thursday, Feb. 6, on the Nasdaq with the symbol EBIO.
Genocea Biosciences Inc., based in Cambridge, Mass., develops vaccines to treat the herpes simplex virus, malaria, and other diseases. In a 5.5 million share offering at $12 apiece, the company raised $66 million when it debuted Wednesday, Feb. 5. Proceeds from the offering will be used for research and development. Shares listed on the Nasdaq under the symbol GNCA. In early afternoon trading Wednesday, shares slipped $0.68, or 5.67%, to $11.32.
NephroGenex, a clinical-stage biotech developing treatments for kidney diseases, will raise up to $47 million in a 3.1 million share offering to be priced at $12 to $14. Founded in 2004, the Research Triangle Park, N.C.-based company will list on the Nasdaq Friday, Feb. 7, with the ticker NRX. Aegis Capital is the sole bookrunner. Proceeds from the IPO will be used to finance late-stage trials on pyridorin, in development to slow the progression of diabetic nephropathy, a disease that affects some 6 million people.
Revance Therapeutics, a developer of a next-generation version of the wrinkle eraser Botox, will attempt to raise $86.24 million in a 5 million share offering at $14 to $16. The San Francisco company's RT-001, aimed at eliminating crow's feet lines around the eyes, could eventually be used to control excessive sweating, migraines, and allergic rhinitis. Lead underwriters are Cowen Securitas and Piper Jaffray. Nasdaq won the listing and the ticker is RVNC. Expected trade date is Thursday, Feb. 6.
Acucela hopes to raise up to $125 million in a 9.2 million share offering in Japan to support its development of treatments against eye disease like age-related macular degeneration, diabetic retinopathy, and glaucoma. Its lead product candidate, emixustat hydrochloride, is in its third and final phase of clinical development. Unlike almost any other R&B biotech, Acucela operates at a modest annual profit thanks to its partnership with Japan's Otsuka Pharmaceuticals. Morgan Stanley is the lead underwriter. Price range for the Seattle-based company is 1,650 to 1,800 yen, or $15.82 to $17.82. Trade date (one day this week) and symbol are to be announced.