Pharma Makes Up This Week’s Small IPO Plate

Epizyme, Kamada will bring May's total offerings to a robust 30

   

While only two deals are expected for this week — a common theme for holiday-shortened weeks — May still should end up being a big month for IPOs. Should this week’s offerings go public as planned, the market will have churned out 30 IPOs in May. That’s happened only three times in the past decade, according to Renaissance Capital.

Also encouraging is that May hasn’t been an outlier — the year-to-date performance has been a standout 72 pricings, the second-best performance since 2000.

Last week, IPOs once again proved their durability. Here’s a chart of the deals:

Company Ticker Offering Price Return
ChannelAdvisor ECOM $14.00 +33%
Global Brass and Copper BRSS $11.00 +18%
Ply Gem PGEM $21.00 +13%
Portola Pharmaceuticals PTLA $14.50 +13%
Alcobra ADHD $8.00 -1%
Constellium CSTM $15.00 -1%
Average +13%

Here’s a look at this week’s shortened list of offerings:

Epizyme

Epizyme (EPZM) is a clinical-stage biotech company that works on personalized therapeutics. The focus is on isolating a molecule, called an oncogene, that’s the source of genetically defined cancers. The company’s main drug currently is in Phase 1 clinical trials.

Founded in late 2007, Epizyme has put together several collaborations with top firms like Celgene (CELG) and GlaxoSmithKline (GSK). These arrangements have resulted in $120 million in non-equity funding — a pretty big validation of the core technology.

Epizyme plans to issue 4.3 million shares on the Nasdaq at a range of $13 to $15. Lead underwriters include Citigroup (C), Cowen & Company and Leerink Swann.

Kamada

Kamada (KMDA) develops drugs for the orphan market — diseases that impact a small part of the population and often get government subsidies. Its key expertise is in the process of extracting and purifying proteins from human plasma, which produce Alpha 1-antitrypsin (“AAT”). ATT is known to help with such things as inflammation and tissue protection.

The company’s largest product, Glassia, is the only liquid, ready-to-use, intravenous plasma-derived AAT offering approved by the FDA. Kamada also has a pipeline of other promising drugs.

Revenues surged from $14.4 million to $72.7 million from 2009 to 2012, and the company also managed to post an operating profit of $4.2 million last year.

Kamada, which currently trades on the Tel Aviv Stock Exchange, plans to issue 5.6 million shares on the Nasdaq at $10.75 each. Lead underwriters include Morgan Stanley (MS) and Jefferies & Co. (JEF).

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/pharma-makes-up-this-weeks-small-ipo-plate-epzm-kmda/.

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