Two more biotechs leverage upsized offerings in IPO boom as Harbour pitches a raise in Hong Kong
The IPO market is still booming. Two more biotechs jumped onto Nasdaq this week with upsized offers, and a third has indicated that it wants a slice of the action.
Pennsylvania-based Harmony Biosciences Holdings $HRMY raised $128 million by offering 5.3 million shares at $24 apiece, exceeding the proposed range of $20 to $23 a share. On Wednesday, it closed at just over $37 per share.
The Paragon portfolio company, which filed for a $100 million IPO weeks ago, initially planned to offer just 4.7 million shares. It acquired its sole drug in the pipeline, pitolisant, from Bioprojet in France, paying $150 million for the US license, $50 million for NDA acceptance and $77 million for the first approval. Millions more are due if Harmony hits certain milestones, according to the company’s S-1. Royalties are tiered at 13% to 24%.
The drug is currently marketed as Wakix for excessive daytime sleepiness for adults with narcolepsy, and plans are in place to test other indications, including pediatric EDS and cataplexy.
Second time’s the charm for California-based Inhibrx $INBX, which abandoned plans for a $75 million IPO last year. This time, it successfully raised $119 million from 7 million shares — a million more than expected — at $17 apiece, the midpoint of a $16 to $18 range. It closed Wednesday at more than $20 per share.
Inhibrx has four Phase I drugs in the pipeline developed on its single domain antibody (sdAb) platform, three of which are for various cancers. The fourth drug, INBRX-101, potentially treats Alpha-1 antitrypsin deficiency (AATD).
In the last year, the biotech has sold $55 million in convertible promissory notes to Viking Global Investors and other undisclosed investors, which will eventually settle into shares of the company’s common stock. Due to a license deal the company struck with Celgene (before the Bristol Myers Squibb buyout), Inhibrx could receive up to $934 million, plus royalties that range from the “high single-digits” to the “low teens,” according to the S-1.
Harbour BioMed filed for an IPO in Hong Kong on Tuesday, with Morgan Stanley, BofA Securities and Citic Securities as joint bookrunners. This June and July, the company raised $102.8 million from series C convertible redeemable preferred shares. It’s raised a total of $300 million since 2016 to develop its pipeline of immunology and immuno-oncology drugs.
The company’s lead candidate is tanfanercept for the treatment of moderate-to-severe dry eye disease. Harbour initiated a Phase III trial in China in August, and data from a Phase III US study and Phase II China study suggest that the drug could meet its primary endpoint — improvement to the total sum of superior, central and inferior corneal areas.