Foam-focused acne fighter Foamix Pharmaceuticals sets terms for $65 million IPO

Shutterstock photo

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 million.

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 faster approval.

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 ( RVNC ) 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, 2014.

The article Foam-focused acne fighter Foamix Pharmaceuticals sets terms for $65 million IPO originally appeared on IPO investment manager Renaissance Capital's web site

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 Nasdaq, Inc.

This article appears in: News Headlines , IPOs

More from Renaissance Capital


Renaissance Capital

Renaissance Capital

Follow on:

Research Brokers before you trade

Want to trade FX?

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by