Cloud Operator Castlight Among This Week’s New Stocks to Watch

Pharmaceuticals dominate list of upcoming IPOs

   

Last week showed that the enthusiasm for IPOs remains strong. And much of the interest is for tech deals, as seen with the offering from Coupons.com (COUP). On Friday, the stock surged by 88%.

As for the current week, we’ll see a variety of biotech companies and even a shipping operator hit the markets. But the main interest will likely be for Castlight Health, a cloud operator that helps to manage healthcare costs.

So, let’s take a look at all the new stocks to watch for this week:

New Stocks to Watch – Galmed Pharmaceuticals (GLMD)

This is a clinical-stage biotech company that is focused on developing a once-per-day oral therapy for the treatment of liver diseases and cholesterol gallstones. To do this, the company has developed synthetic fatty-acid/bile-acid conjugates.

The lead candidate is aramchol, which treats fatty liver disorders, including Non-Alcoholic Steato-hepatitis, or NASH, which is a chronic disease that constitutes a large unmet medical need. But it may also prove effective with obesity and insulin resistance.

Galmed Pharmaceuticals plans to offer 2.4 million shares at a range of $12 to $14, and the lead underwriter is Maxim Group.

New Stocks to Watch – Dipexium Pharmaceuticals (DPRX)

This is a biotech operator whose lead drug is Locilex, which is a topical antibiotic. At the core is an antimicrobial peptide that has been synthesized from the skin of the African Clawed Frog. The company says the drug is intended “for the treatment of certain mild and moderate skin
infections in superficial wounds.” The company believes that the market is about $1.46 billion.

Dipexium Pharmaceuticals plans to issue 2.3 million shares at a range of $12 to $14, and the lead underwriter is Oppenheimer & Co.

New Stocks to Watch – Diamond S Shipping (DSG)

This is one of the world’s largest owners and operators of medium-range product tankers, with a fleet of 33 vessels. For the most part, the focus is on transportation of refined petroleum. With the proceeds of the IPO, the company plans to purchase ten more ships.

During the nine months ended December 31, 2013, revenues came to $134.4 million and net income was $2.3 million.

Diamond S Shipping Group plans to issue 14 million shares at a range of $14 to $16. The lead underwriters include Jefferies and BofA Merrill Lynch (BAC).

New Stocks to Watch – Castlight Health (CSLT)

Castlight operates a cloud-based platform that helps companies better manage healthcare costs. A key is the use of Big Data analytics, which has resonated with customers — Castlight has signed more than 24 companies on the Fortune 500, including Walmart (WMT), Microsoft (MSFT) and Honeywell (HON).

From 2011 to 2013, revenues surged from $1.9 million to $13 million. However, losses have also continued to ramp up. Last year, they came to a hefty $62.2 million.

The company intends to issue 11.1 million shares at a range of $9 to $11. The lead underwriters include Goldman Sachs (GS) and Morgan Stanley (MS).

New Stocks to Watch – Achaogen (AKAO)

This is a clinical-stage biotech company that focuses on development of antibacterials to treat multi-drug resistant, or MDR, infections. The lead candidate is plazomicin, which targets Escherichia coli and Klebsiella pneumoniae. According to the Centers and Disease Control and Prevention, these are “nightmare bacteria.”

Currently, the drug is in Phase 3 trials. It is also part of a program from the Biomedical Advanced Research and Development Authority, which has provided up to $103.8 million in funding.

Achaogen plans to issue 5 million shares at a price range of $12 to $14. The lead underwriters include Credit Suisse (CS) and Cowen & Company.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/castlight-new-stocks-to-watch/.

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