Israeli biomed company Foamix Pharmaceuticals Ltd. (Nasdaq:FOMX), developer of a foam-based delivery system for dermatological drugs, has seized the wave of rising share prices in the biomed sector including its own share price to issue a $60 million secondary offering.
Foamix has thus raised a total of $100 million over just a few months. Were the company to have raised the entire amount at once, it would have been the biggest offering made by any Israeli company on Wall Street this year.
The share price was set at $9.30, 55% higher than at its IPO in September, when Foamix was forced to compromise significantly on the share price and company value. Foamix has now raised its original expectations for itself on both fronts.
Barclays Capital Inc., Cowen and Company, LLC and Guggenheim Securities, LLC were book-running managers for the offering. Oppenheimer & Co. Inc. was co-manager. The offering did not include an offer for sale.
Foamix improves existing drugs for skin conditions by converting them from creams or orally ingested drugs into foam-based drugs. The company is awaiting results of Phase III clinical trials for an acne treatment and for Phase II trial results for drug to treat a rash caused by chemotherapy. The results for both trials are expected in the third quarter of 2015.
In 2014, the company reported $5 million in revenue from partnerships with other drug companies, and 285% growth compared with 2013, however, the company lost $11.4 million, compared with $2.4 million in 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2015
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