Predix Pharmaceuticals to raise $55m at $232m value
Three Israeli companies have raised a total of $314 million in IPOs on in New York in 2005.
Tali Tsipori 6 Oct 05 17:35
Biotechnology company Predix Pharmaceuticals took another step towards its IPO on Nasdaq at the end of last week. In its second draft prospectus submitted to the US Securities and Exchange Commission (SEC), Predix said that it planned to become a public company at a company value of $211-253 million (average company value - $232 million). Predix will issue five million shares at $10-12 per share, raising $50-60 million (average - $55 million). The issue does not include an offer to sell by the company’s shareholders. The underwriters - UBS Investment Bank, Deutsche Bank Securities, ThinkEquity Partners LLC, and CIBC World Markets Corp. will receive an option to buy 750,000 more shares from the company, which would increase the proceeds by $8.3 million.
When the issue is completed, Predix will be traded under the ticker symbol PRDX. Other Israeli biotechnology companies listed on Nasdaq include Keryx Biopharmaceuticals Inc. (Nasdaq: KERX;), Compugen (Nasdaq: CGEN; TASE: CGEN), and Pharmos Corporation's (Nasdaq: PARSD). If Predix’s IPO goes through, it will be the fourth IPO in New York by an Israeli company this year, following issues by Shamir Optical Industries Ltd. (Nasdaq: SHMR; TASE: SHMR), Alon USA Energy Inc. (NYSE: ALJ), and Ituran Location and Control Ltd. (Nasdaq: ITRN); TASE: ITRN), which raised an aggregate $314 million.
In its draft prospectus, Predix states that the proceeds from the issue will be used to finance clinical trials, pre-clinical trials, and other R&D activity.
Predix is the result of a merger in 2003 between Israeli start-up Predix and private US company Physiome Sciences. Three people founded Predix in 2000: Dr. Silvia Noiman, Dr. Oren Becker, and Pharmos chairman and CEO Dr. Haim Aviv. Aviv has been inactive in the company since 2002, and does not hold shares in it.
Predix focuses on the discovery and development of new drugs for treating diseases linked to G-Protein coupled receptors.
Predix’s three drugs are currently in various phases of clinical trials, and six more are in the discovery or pre-clinical development phases. The company’s most prominent drug is PRX-00023, designed for treatment of generalized anxiety disorder.
Published by Globes [online] - www.globes.co.il - on October 6, 2005