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Merrimack IPO Falls Out the Gate PDF Print E-mail
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Sunday, 01 April 2012 05:56

Cancer drug developer struggles after debut, while rest of 2012 class is up.

Merrimack Pharmaceuticals raised $100 million in the only U.S. life sciences IPO in March, but its shares had fallen 13.7 percent at the close of trading on March 28. The Cambridge, Massachusetts-based biotech sold 14.3 million shares at $7 per share, valuing the biotech at $647 million. It was a long struggle for the targeted cancer drug developer. It postponed an IPO attempt in February through an offering of 16.7 million shares at a range of $8 to $10 a share, which if it had been successful would have raised as much as $150 million and valued the company at $853 million.


Merrimack has four targeted investigational cancer compounds in clinical development, two of which are in late stage development: MM-398, a nano-encapsulated formulation of the chemotherapy drug irinotecan being studied as a treatment for metastatic pancreatic cancer in patients who have failed treatment with gemcitabine; and MM-121, a fully human monoclonal antibody that targets the ErbB3 cell surface receptor, known to mediate communication inside and outside cells. MM-121 is being developed in collaboration with Sanofi, which hold exclusive global rights. Merrimack is developing MM-398 with PharmEngine, which holds commercialization rights in Taiwan.

Merrimack joins six other life sciences companies that went public during the first quarter of 2012. All but one lowered their expectations to become public companies. Except for Merrimack, the life sciences IPO class of 2012 is trading an average of 20 percent above the initial offering price, a reflection of the Nasdaq Composite Index, which is up 18.7 percent since the beginning of the year.

Although aftermarket performance has improved, capital raised through U.S. IPOs is down 7.9 percent in the first quarter of 2012 compared to the same period last year, with seven companies raising $480 million in 2012 and eight companies raising $521 million in 2011. Outside the United States, there have been six IPOs so far this year, three in China and three in France, which raised a total of $404 million. This is a 50 percent drop in activity from the same period in 2011 when 12 companies raised $1.3 billion.

French biotech DBV Technologies made its public debut just before the end of the month through an IPO on the Euronext Paris exchange and a concurrent private placement. The company raised $53.6 million through the sale of 4.6 million shares at $11.80 a share, the low end of its target range, valuing the company at $157.1 million. DBV is developing allergy treatments that are delivered through the skin. Its investigational treatment for peanut allergies is in mid-stage testing in children and adults. 

Deals for the Week Ending March 30, 2012 : Sheet1

Global Venture Financings   

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CompanyLocationAmount Raised (USD M)Principal Activity

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SientraSanta Barbara, CA65Aesthetic devices

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Relievant MedsystemsRedwood City, CA30Chronic pain relief devices

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Strand DiagnosticsIndianapolis, IN30Dx accuracy systems

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BiO2 MedicalSan Antonio, TX13.7Catheters

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ImaginAbLos Angeles, CA12.5Imaging agents

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GenalyteSan Diego, CA11.8Multiplexing technology

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Solace TherapeuticsFramingham, MA7Genitourinary devices

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Alcyone Life SciencesBoston, MA1.8CNS devices

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ADC TherapeuticsLausanne, Switzerland50Antibody drug conjugates

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Promethera BiosciencesMont-Saint-Guibert, Belgium31.4Cell therapy

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Microsulis MedicalDenmead, UK5Vascular devices

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Abingdon HealthOxford, UK4.8Diagnostics

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Denator ABGothenburg, Sweden3.8Tools/Technology

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Agroils TechnologyItaly1.2Biofuels from jatropha

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BioMarCare TechnologiesJerusalem, Israel1Cancer diagnostics

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Diurnal   

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Total Raised US 171.8 

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Total Raised Non-US 97.7 

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Grants    

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CompanyFunding/Contracting AgencyAmount Raised (USD M)Principal Activity

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Cenusa BioenergyUSDA NIFA 5-year grant25Feedstock production

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AsuragenCancer Prevention and Research Institute of Texas6.8Cancer diagnostics

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PLx Pharma   

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GenVecNIH NIAID0.6Malaria vaccine development

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Acadia PharmaceuticalsMichael J. Fox Foundation0.3Parkinson's disease

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Total Grants  33.9 

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Public Financings   

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CompanyTickerAmount
Raised (USD M)
Financing Type

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Merrimack PharmaceuticalsMACK100IPO

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DBV Technologies (France)Euronext:DBV53.6IPO

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Chongqing Huapont Pharmaceutical (China)SHE:002004146PIPE

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Arch Biopartners (Canada)CNSX:ACH0.3PIPE

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ThromboGenics (Belgium)Euronext:THR103.1PIPE

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EDAP TMS (France)EDAP5.6PIPE

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Hybrigenics (France)Paris:ALHYG4.4PIPE

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EpiCept CorporationOTC:EPCT1.1PIPE

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Corcept TherapeuticsCORT0.5PIPE

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Oncothyreon   

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OncoSec MedicalOTC:ONCS7.8Follow-on

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Sunesis PharmaceuticalsSNSS25Royalty stream financing

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Corcept TherapeuticsCORT12.4Warrant exercise

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Teva Pharmaceuticals (Israel)TEVA1500Debt

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GentaOTC:GNTA12Debt

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Total Public Financings-US 205.8 

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Total Public Financings-Non-US 1813 

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M&A    

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AcquirerTargetDeal Value
(USD M)
Focus

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Bausch + LombIsta Pharmaceuticals500Ophthalmic

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Valeant Pharmaceuticals (Canada)Natur Produkt International (Russia)180OTC medicines

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Royal DSM (Netherlands)Verenium assets37Industrial/ag

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Derma SciencesMedEfficiency14.5Medical devices

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Abingdon Health (United Kingdom)Molecular Vision (United Kingdom)N/APOC diagnostics

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Beckman CoulterBlue Ocean BiomedicalN/ATools/Technology

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Alliances    

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Company/LicenserCompany/LicenseeDeal Value
(USD M)
Focus

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Paion (Germany)Yichang Humanwell Pharmaceutical (China)N/ANeurology drug license option

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DiaGenic (Norway)GE HealthcareN/ADiagnostics collaboration

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Pharming (Netherlands)Hyup Jin (South Korea)N/ARare disease drug license

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QuantuMDx (United Kingdom)A*STAR Institute of Microelectronics (Singapore)N/ADNA sequencing collaboration

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Transparent (Japan)Molecular Response LaboratoriesN/ATechnology collaboration

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Microsulis Medical (United Kingdom)AngioDynamicsN/AMedical device alliance

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RegeneRxLee's Pharmaceutical (Hong Kong)3Ophthalmic drug license

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Fujifilm (Japan)Kyowa Hakko Kirin (Japan)N/ABiosimilars joint venture

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Meso Scale DiscoveryBristol-Myers SquibbN/AAlzheimer's diagnostic collaboration

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Optimer PharmaceuticalsAstellas Pharma (Japan)90Infection treatment license

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NGM BiopharmaceuticalsDaiichi Sankyo (Daiichi Sankyo)N/ADiabetes drug discovery collaboration/license

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HTG Molecular DiagnsoticsSanofi (France)N/ABiomarker collaboration

By MARIE DAGHLIAN

 
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