Blood clot biotech rEVO Biologics sets terms for $50 million IPO

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rEVO Biologics, which sells recombinant protein therapies to treat a rare blood clotting disorder, announced terms for its IPO on Thursday. The Framingham, MA-based company plans to raise $50 million by offering 3.6 million shares at a price range of $13 to $15. At the midpoint of the proposed range, rEVO Biologics would command a fully diluted market value of $261 million.

The company, which was originally formed as a subsidiary of Genzyme, completed an IPO in 2002 and was bought by French pharmaceutical company LFB Biotechnologies in 2010. LFB Biotechnologies intends to purchase $10 million worth of shares on the offering and invest $10 million in a concurrent private placement

rEVO currently markets ATryn, a treatment for blood clots during or after surgery or childbirth in patients with hereditary antithrombin deficiency (HD AT), a rare clotting disorder. The company also commenced enrollment for Phase 3 trials of ATryn in July 2014 for the treatment of preeclampsia, a pregnancy-related disorder than can cause organ failure, seizures, coma and death. 

For the six months ended June 30, 2014, revenue fell 31% to $7 million due to lower related party service revenue, partially offset by higher product revenue. Operating loss widened to $11 million (from $8 million in the 1H13), driven by an increase SG&A spending.

rEVO restated its financial statements in an amended filing on July 28, 2014, and disclosed a material weakness in financial reporting, as it misclassified unearned revenue as related party service revenue. 

rEVO Biologics, which was founded in 1993 and booked $18 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol RBIO. Piper Jaffray and Guggenheim Securities are the joint bookrunners on the deal. It is expected to price during the week of September 15, 2014.

The article Blood clot biotech rEVO Biologics sets terms for $50 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: News Headlines , IPOs

Referenced Stocks: RBIO

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