Replies to post #192719 on Biotech Values

[mcbio]

CATB > Catabasis Pharmaceuticals IPO set for Thurs June 25...founded by former Sitris execs. Lead drug is CAT-1004 for Duchenne muscular dystrophy...

I take it you mean founded by former Sirtris execs?

The Cambridge, MA-based company plans to raise $60 million by offering 4.3 million shares at a price range of $13 to $15. At the midpoint of the proposed range, Catabasis Pharmaceuticals would command a fully diluted market value of $207 million.

Now that is a much more stomachable valuation to me. And sounds like a novel approach to DMD. I would want to gain further comfort on how likely their approach is to work in the clinic. I'm assuming at that kind of valuation it's a high-risk boom-or-bust type of gamble. And is it a red flag the connection to former Sirtris (assuming that's what you meant) execs (think there ended up being a lot of controversy surrounding that company)?