This Week’s Healthcare IPOs

The IPO activity in the U.S. pharma/biotech sector has had a strong showing so far this year, with 69 listings compared to only 46 during the same period last year. In the third quarter, 34 companies belonging to the healthcare sector were listed on the major stock exchanges in the US.

Let’s take a look at what’s in store for the week ahead.

1. Pulmonx Corp

Pulmonx Corp is a commercial-stage medical device company that provides a minimally invasive treatment for patients with severe emphysema, a form of chronic obstructive pulmonary disease.

The Redwood City, California-based company plans to list its stock on the Nasdaq Global Select Market under the symbol “LUNG” on October 1, 2020.

About 6.67 million shares of the company’s common stock will be sold in the offering, and the underwriters have an option for 30 days to purchase up to 1.0 million additional shares. The initial public offering price is expected to be between $14.00 and $16.00 per share.

Underwriters of the IPO:

BofA Securities, Inc., Morgan Stanley & Co. LLC, Stifel, Nicolaus & Company, Inc, Wells Fargo Securities, LLC, Canaccord Genuity LLC.

Marketed Products:

The company’s marketed treatment for patients with severe emphysema is comprised of Zephyr Valve, Chartis System and StratX Platform.

The Zephyr Valve is an FDA-approved implant, while the Chartis System and the StratX Platform are designed to help physicians identify and treat those patients who are most likely to benefit from treatment with Zephyr Valves.

According to the company, its Zephyr Valve is now commercially available in more than 25 countries, with over 80,000 valves used to treat more than 20,000 patients through June 30, 2020.

The global market opportunity for Pulmonx’ treatment is estimated to be roughly $12 billion.

Financial numbers:

For the six months month ended June 30, 2020, the company’s net loss widened to $19.07 million or $9.93 per share from a loss of $11.7 million or $6.85 per share in the same period a year ago.

Revenue for the period declined to $12.29 million from prior year’s $13.14 million.

2. Immunome Inc.

Exton, Pennsylvania-based Immunome is scheduled to go public on the Nasdaq Global Select Market under the symbol “IMNM” on October 2, 2020.

Immunome is a preclinical stage biopharmaceutical company developing antibody therapies for cancer and infectious diseases. The IPO is expected to be priced between $11.00 and $13.00 per share.

The company has offered to sell 2.5 million shares of common stock in the offering, and the underwriters have an option for 30 days to purchase up to 375 thousand additional shares. The IPO is expected to be priced between $11.00 and $13.00 per share.

Underwriters of the IPO:

Ladenburg Thalmann & Co. Inc., Chardan Capital Markets, LLC

Pipeline & Near-term Catalysts:

The company’s lead oncology candidate is IMM-ONC-01 that targets Interleukin-38, or IL-38, a novel immune checkpoint which allows tumors to evade the immune system response efforts. This compound is under preclinical testing and filing of IND for IMM-ONC-01 is expected in the second half of 2021.

The second product candidate is IMM-BCP-01, a biosynthetic convalescent plasma, for the treatment of COVID-19. This compound is expected to advance to an IND application in the first half of 2021.

3. C4 Therapeutics Inc.

Watertown, Massachusetts-based C4 Therapeutics is a preclinical-stage biopharmaceutical company developing therapeutic candidates – that target and destroy disease-causing proteins – for the treatment of cancer, neurodegenerative conditions and other diseases.

Founded in 2015, the company plans to list its stock on the Nasdaq Global Select Market under the symbol “CCCC” on October 2, 2020.

About 8.824 million shares of the company’s common stock will be sold in the offering, with the price expected to be between $16.00 and $18.00 per share. The underwriters have an option for 30 days to purchase up to 1.324 million additional shares.

Underwriters of the IPO:

Jefferies LLC, Evercore Group L.L.C., BMO Capital Markets Corp., UBS Securities LLC

Pipeline:

The company has four preclinical programs:

— CFT7455, an orally bioavailable degrader targeting IKZF1/3 for the treatment of multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma, or PTCL, and mantle cell lymphoma.

— CFT8634, an orally bioavailable degrader of a protein target called BRD9, for synovial sarcoma and SMARCB1-deleted solid tumors.

— Degraders specifically targeting V600E mutant BRAF to treat melanoma, non-small cell lung cancer, colorectal cancer and other solid malignancies that harbor this mutation

— Degraders targeting RET to treat lung cancer, sporadic medullary thyroid cancers and other solid malignancies that harbor oncogenic RET lesions.

Near-term Catalysts:

— Submission of IND for CFT7455 for multiple myeloma, peripheral T-cell lymphoma and mantle cell lymphoma is expected in the fourth quarter of 2020 and intiation of first-in-human Phase 1/2 clinical trial in the first half of 2021.

–Submission of IND for CFT8634 is expected in the second half of 2021 and initiation of first-in-human Phase 1/2 clinical trial by the end of 2021.

4. Oncorus Inc.

Cambridge, Massachusetts-based Oncorus Inc. is scheduled to make its debut on the Nasdaq Global Select Market under the symbol “ONCR” on October 2, 2020.

Founded in 2015, Oncorus is a clinical stage biopharmaceutical company developing oncolytic virus therapies to transform outcomes for cancer patients.

The company has offered to sell 5.8 million shares of common stock in the offering, and the underwriters have an option for 30 days to purchase up to 870 thousand additional shares. The initial public offering price is expected to be between $14.00 and $16.00 per share.

Underwriters of the IPO:

Jefferies LLC, Evercore Group L.L.C., Piper Sandler & Co

Pipeline & Near-term Catalysts:

The company is developing pipeline of product candidates under two platforms.

The company’s product candidates are based on the two platforms – oncolytic Herpes Simplex Virus (oHSV) Platform and Synthetic Virus Platform

oHSV Platform

— The lead product candidate under this platform is ONCR-177, an intratumorally administered viral immunotherapy, currently in phase I clinical trial in patients with several different types of solid tumors, including breast cancers and cutaneous tumors.

— ONCR-GBM program designed to treat brain cancer, under preclinical testing. A clinical candidate from this program is expected to be nominated in the second half of 2021.

Synthetic Virus Platform

The synthetic viral immunotherapies are based on coxsackievirus A21, or CVA21 and Seneca Valley Virus, or SVV, and they are in preclinical development.

— The product candidate based on CVA21 is intended to be administered intravenously for the treatment of non-small cell lung cancer, among other potential indications, including melanoma and bladder cancer.

— The product candidate based on SVV is intended to be administered intravenously for the treatment of small cell lung cancer, treatment-emergent small cell neuroendocrine prostate cancer, and other neuroendocrine tumors.

The clinical candidates in the Synthetic CVA21 and Synthetic SVV programs for development are expected to be nominated in the first half of 2021.

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