Early on, 2014 is proving to be a whiz-bang year for biotech IPOs. Eight new stocks in the biotech industry hit the markets last week, and the Financial Times, among others, is worried that we might be experiencing a biotechnology bubble.
Bubble or not, Wall Street certainly is showing no signs of slowing down. The upcoming week’s slate of six new stocks includes three biotech IPOs.
Here’s a quick look at these new stocks to watch:
Concert Pharmaceuticals (CNCE)
Concert Pharmaceuticals is a clinical-stage biotech operator that uses deuterium chemistry to discover and develop novel small-molecule drugs. Concert believes that this approach is much more efficient, helping to reduce the costs of treatments.
The main drugs in the pipeline include CTP-354 (spasticity associated with multiple sclerosis and spinal cord injury), CTP-499 (diabetic kidney disease) and AVP-786 (neurologic and psychiatric disorders under the company’s collaboration with Avanir [AVNR]). Concert also has other drugs, which have yet to go into trials, that involve collaborations with Celgene (CELG) and Jazz Pharmaceuticals (JAZZ).
Concert Pharmaceuticals plans to issue 5 million shares on the Nasdaq under the ticker CNCE at a range of $14 to $16. Lead underwriters include UBS Investment Bank (UBS) and Wells Fargo Securities (WFC).
Eagle Pharmaceuticals (EGRX)
Among this week’s other new stocks is Eagle Pharmaceuticals, a specialty pharmaceutical company that develops injectable products. So far, the company’s portfolio includes two FDA-approved products and six that are in advanced stages. Eagle believes the market potential for all these treatments is about $4 billion in the U.S.
From 2012 to 2013, revenues shot up from $2.5 million to $13.7 million, but the company still suffered a $6 million loss.
Eagle Pharmaceuticals plans to offer 3.3 million shares on the Nasdaq under the ticker “EGRX” at a range of $14 to $16. Lead underwriters include Piper Jaffray (PJC) and William Blair.
Flexion Therapeutics (FLXN)
Flexion Therapeutics is a biotech company that develops novel, long-acting, injectable pain therapies. For the most part, Flexion’s drugs focus on the treatment of musculoskeletal conditions such as osteoarthritis. The lead candidate, FX006, is currently in Phase 2b trials.
The company plans to create its own sales force in the US. But as for international markets, it is exploring partnerships.
Flexion Therapeutics plans to sell 5 million shares on the Nasdaq under the ticker “FLXN” at a range of $12 to $14. Lead underwriters include BMO Capital Markets (BMO) and Wells Fargo Securities.
Inogen leads off the groups of new stocks that don’t delve in biotech, though it’s still affiliated with healthcare.