Foamix Pharmaceuticals, an Israeli biotech developing topical
foam treatments for moderate-to-severe acne, announced terms for
its IPO on Wednesday. The Rehovot, Israel-based company plans to
raise $65 million by offering 6.0 million shares at a price range
of $10 to $12. At the midpoint of the proposed range, Foamix
Pharmaceuticals would command a fully diluted market value of $234
Acne products represent a more-than $3 billion industry. Foamix
expects to enter Phase 3 trials for its lead candidate, a
4% minocycline foam formulation acne treatment, in
2015. It is also targeting 2015 to begin Phase 3 trials for
its treatment of impetigo, a bacterial skin infection that
primarily affects young children. The company expects to develop
both candidates through the FDA's 505(b)(2) regulatory pathway for
Foamix has entered licensing agreements with Bayer, Merz and
Actavis for its foam technology, and has received about $15 million
from these partners to date. The company is owned primarily by
management and Israel-based private investors.
Four biotechs based in Israel have gone public this year and a
fifth, Vascular Biogenics, pulled its IPO after one week of
trading. Bio Blast Pharma, Macrocure, MediWound and Galmed
Pharmaceuticals all trade below their IPO price, with the latter
two down about 50%. Late-stage botox biotech Revance Therapeutics (
) fell about 25% in early August, but still trades about 45% above
its offer price. An American biotech targeting acne and other skin
conditions, Dermira, filed for a $75 million IPO last week.
Foamix Pharmaceuticals, which was founded in 2003 and booked $3
million in licensing agreements for the 12 months ended
June 30, 2014, plans to list on the NASDAQ under the symbol FOMX.
Barclays and Cowen & Company are the joint bookrunners on the
deal. It is expected to price during the week of September 15,
Foam-focused acne fighter Foamix Pharmaceuticals
sets terms for $65 million IPO
originally appeared on IPO investment manager Renaissance Capital's
web site renaissancecapital.com.
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)
Global IPO Fund (symbol: IPOSX)
, may have investments in securities of companies mentioned.