Aegerion Pharmaceuticals, Inc.
) recently provided more details on its public offering. The
offering is expected to close on Jan 16, 2013.
The total offer consists of approximately 2.7 million shares
to be issued at a price of $26.64 per share (the closing price on
Jan 10, 2012). In addition, the company has also offered the
underwriter a 30-day option to purchase up to 405,710 shares. The
net funds from this offering are expected to be approximately
These funds will be used for the commercialization of
Aegerion's recently approved Juxtapid. Juxtapid, which gained US
Food and Drug Administration (FDA) approval in Dec 2012, has been
approved for the treatment of patients suffering from homozygous
familial hypercholesterolemia (HoFH) as an adjunct to a low-fat
diet and other lipid-lowering therapies.
In addition to using the funds for Juxtapid's commercial
launch in the US, Aegerion intends to utilize the money for EU
approval and subsequent commercialization, expansion in other
countries to support the approval of Juxtapid, additional
development of Juxtapid and business development activities.
Cash and cash equivalents at the end of 2012 were roughly in
the range of $78 million to $83 million.
Neutral on Aegerion
We are encouraged by the US approval of Juxtapid. The company
recently provided guidance for 2013. For 2013, Aegerion expects
to generate revenue between $15 million and $25 million assuming
250 to 300 patients are on Juxtapid therapy by the end of the
Once Juxtapid is approved in the EU, the company expects to
achieve an annualized worldwide net revenues run rate of $100
million eighteen months after EU approval. The company also
expects to achieve cash flow breakeven from operations eighteen
months after EU approval.
However, we note that
Isis Pharmaceuticals Inc.
) is also looking to enter the market with its HoFH candidate,
Kynamro, which is currently under review in the US.
We have a Neutral recommendation on Aegerion. The stock
carries a Zacks Rank #3 (Hold). Right now,
) looks attractive with a Zacks Rank #1 (Strong Buy).
AEGERION PHARMA (AEGR): Free Stock Analysis
CAMBREX CORP (CBM): Free Stock Analysis
ISIS PHARMACEUT (ISIS): Free Stock Analysis
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