9 New Stocks On Deck — Healthcare Dominates Again

The IPO market got into stride last week, with 10 new stocks pulling off their deals, including eight biotech operators.

But of course, the standout deal was Shake Shack Inc (NYSE:SHAK), a fast-growing burger chain. On its debut on Friday, the stock soared by 119%.

OK, so what’s on tap for new stocks for this week? Let’s take a look (one is holdover from last week, Infraredx, which I covered in a prior post).

New Stocks to Watch: AltheaDx (IDGX)

Expected Offering Date: Wednesday

AltheaDx is a commercial stage molecular diagnostics company that focuses on personalized medicine. The main treatments are for cardiovascular disease, neuropsychiatric disorders and pain.

By using personalized medicine, patients are likely to get more effective prescriptions with fewer side-effects. Each year, prescription medication causes roughly 120,000 deaths and over 2 million serious adverse reactions in the U.S.

For the first nine months of 2014, sales came to $13.6 million and the net loss was $5.9 million.

AltheaDx plans to sell 4.6 million shares at a range of $12 to $14. The lead underwriters include Citigroup Inc (NYSE:C) and Jefferies.

New Stocks to Watch: Carbylan Therapeutics (CBYL)

Expected Offering Date: Wednesday

Carbylan Therapeutics is a clinical-stage biotech operator that is developing a treatment called Hydros-TA. This is an injectable product to treat pain from osteoarthritis of the knee. The treatment is currently in Phase 3 trials.

In the US, more than 27 million suffer from some form of osteoarthritis — and about half will ultimately develop knee-related symptoms. The current global market size in terms of sales is about $1.76 billion.

Carbylan Therapeutics expects to sell 5.8 million shares at a range of $12 to $14. The lead underwriter is Leerink Partners.

New Stocks to Watch: Advanced Accelerator Applications S.A. (AAAP)

Expected Offering Date: Thursday

Advanced Accelerator Applications is a radiopharmaceutical company that develops diagnostic and therapeutic products. Essentially, it uses small amounts of radioactive compounds to develop functional images of organs and lesions, which allows for better treatment of diseases, particularly cancers.

For the first nine months of 2014, sales increased from $49.1 million to $63.3 million. Keep in mind that the company has only been approved to sell its treatments in Europe. But of course, the plan is to get FDA approval to sell into the U.S. market.

Advanced Accelerator Applications plans to offer 5.4 million shares at a range of $13 to $15. The lead underwriters include Citigroup and Jefferies.

New Stocks to Watch: Asante Solutions (PUMP)

Expected Offering Date: Thursday

Asante Solutions is a medical device company that develops systems for the management of diabetes. The company’s first product, called Snap, is the only pump that has a modular design with pre-filled insulin cartridges and disposable pump bodies. It can be used for up to a week.

For the first nine months of 2014, revenues amounted to $964,000 and the net loss was a hefty $23.4 million. But of course, the market opportunity is massive, with 347 million people across the world that suffer from diabetes.

Asante Solutions plans to sell 3.5 million shares at a range of $13 to $15. The lead underwriters include Leerink Partners and Cowen & Company.

New Stocks to Watch: Inotek Pharmaceuticals (ITEK)

Expected Offering Date: Thursday

Inotek Pharmaceuticals is a clinical-stage biopharmaceutical company that is focused on creating treatments for glaucoma. The lead candidate, trabodenoson, helps to restore the natural pressure in a person’s eyes. The drug has also finished Phase 2 clinical trials.

According to the British Journal of Ophthalmology, there ware about 2.8 million Americans who suffer from glaucoma.

Inotek Pharmaceuticals expects to sell 4.6 million shares at a range of $13 to $15. The lead underwriters include Cowen & Company, Piper Jaffray, Canaccord Genuity and Nomura Securities.

New Stocks to Watch: Nexvet Biopharma plc (NVET)

Expected Offering Date: Thursday

Nexvet Biopharma is a clinical-stage biotech company that is focused on developing treatments for pets. To help improve effectiveness of the drugs, the company uses biologics that have proven useful with humans. The company also has developed a platform, called “PETization,” which is based on complex algorithms to “rapidly create monoclonal antibodies” that help target treatments toward particular species.

The lead candidate, NV-01, is a nerve growth factor to control pain from osteoarthritis in dogs. Then there is NV-02, which is a pain inhibitor for degenerative joint disease in cats.

Nexvet expects to issue 4 million shares at a range of $13 to $16. The lead underwriters include Bank of America Corp (NYSE:BAC) and Cowen & Company.

New Stocks to Watch: Columbia Pipeline Partners LP (CPPL)

Expected Offering Date: Friday

Columbia Pipeline Partners LP is a fee-based limited partnership, which was formed by NiSource Inc. (NYSE:NI). The focus is on the operation of pipelines, storage and related midstream assets. In fact, the partnership owns one of the largest underground natural gas storage systems in the U.S.

For the first nine months of 2014, Columbia Pipeline Partners reported revenues of $1 billion and operating income of $356.1 million.

The firm plans to sell 40 million shares at a range of $19 to $21. The lead underwriters include Barclays PLC (NYSE:BCS), Citigroup, Bank of America, Goldman Sachs Group Inc (NYSE:GS), J.P. Morgan Chase & Co (NYSE:JPM), Morgan Stanley (NYSE:MS) and Wells Fargo & Co (NYSE:WFC).

New Stocks to Watch: Easterly Government Properties (DEA)

Expected Offering Date: Friday

Easterly Government Properties is a real estate investment trust (REIT) that is focused on Class A commercial properties that are leased to the U.S. Government. The portfolio includes 29 properties, with a total of 2.1 million square feet. Some of the agencies that are tenants include the Federal Bureau of Investigation and the Drug Enforcement Administration.

For the first nine months of 2014, revenues came to $53.6 million and net income was $4.8 million.

Easterly Government Properties plans to issue 12 million shares at a range of $14 to $16. The lead underwriters include Citigroup, Raymond James and RBC Capital Markets.

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.

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