Foamix Pharmaceuticals Nasdaq IPO slashed to $40m

Nasdaq

The dermatology drug developer's offering was at a $128 million company value, down from $234 million.

Dermatology drug developer Foamix Pharmaceuticals Ltd. yesterday completed the pricing stage of its Nasdaq IPO, a day earlier than expected. In order to complete its offering, however, the company had to dramatically reduce its price and extent. Foamix had wanted to raise $65 million at a company value of $234 million, after money ($11 a share), but eventually raised only $40 million, after increasing the number of shares issued and lowering the price to $6 a share, reflecting a company value of $128 million, after money.

The volume of the offering was reduced twice. In the original prospectus, the company sought to raise $75 million at an unspecified company value, and later revised the figure to $65 million, but eventually settled for $40 million. The chief underwriters for the IPO were Barclay's Capital and Cowen & Co., and the secondary underwriters were Oppenheimer and Maxim Group. The underwriters are entitled to purchase shares for $700,000 at the same terms as in the IPO.

Foamix develops new foam formulations of drugs as an alternative to ointments. It has two drugs in advanced clinical trials: one for treatment of acne, and one for treatment of Impetigo, a skin disease. The company also has agreements with pharmaceutical companies that use its foam as part of their products, based on new or existing drugs. The company has posted $14.1 million in revenue from these agreements to date, including $2 million in the first half of 2014, when its loss totaled $3.4 million.

The company's two drugs will begin expedited Phase III clinical trials in 2015: the acne treatment drug in mid-2015 and the Impetigo treatment drug in late 2015. The company's cofounders are Dov Tamarkin (CEO) and Meir Eini (COO), and its private investors include Eri Steimatzky, Benny Shabtai, and diamond merchant Chaim Chzic.

Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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