On Friday, Galmed Pharmaceuticals Ltd. updated its filing with the US Securities and Exchange Commission (SEC) for an IPO on Nasdaq: it will issue 2.35 million shares at $12-14 per share for a gross $28.2-32.9 million, at a company value of $122-143 million, after money (midpoint $30.6 million at a value of $132 million). It will be listed under the ticker GLMD.
The underwriters, MLV & Co. Maxim Group LLC, and Feltl and Company Inc., have an over-allotment option to buy to an additional 352,500 shares, which if exercised in full, will boost the midpoint gross proceeds by $4.6 million.
Galmed, founded in 2000 and with just 10 employees, is developing treatments for liver diseases. It is planning a Phase IIb clinical trial with 240 patients on its leading drug candidate, Aramchol, for the treatment of non-alcoholic steatohepatitis (NASH) or fatty liver disease. The company says that NASH affects 30% of people in development countries, and that 75% of people in the West suffer from diabetes and obesity. When the liver fails to clear fats, they build up, causing toxicity that can cause inflammation, cirrhosis of the liver, and cancer, as well as heart disease.
Galmed is owned by CEO Allen Baharaff, with a 49% stake; Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) director Chaim Hurvitz (12.1%), who serves as chairman; David and Dvora Goldfarb (6.8%), and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) owns 4.4%.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014