Intec Pharma Ltd. (TASE: INTP), which develops delayed release pharmaceuticals, successfully concluded Tuesday its Nasdaq IPO on Tuesday, and will continue to be traded in the Tel Aviv Stock Exchange. Intec was forced to compromise on the amount raised in order to complete the offering.
Intec raised $27 million at a price of $6 per share, placing the Jerusalem-based firm’s value at $60.6 million. The company had targeted $40 million as the amount it wanted to raise. The Nasdaq share price represented an 18% discount over the share price on the TASE on Tuesday morning, after its stock had already slumped 10% on Thursday, when Intec failed to conclude the IPO as planned.
Initially, the pharmaceutical firm looked to raise $30 million, then raised the scope of the proposed offering following the success of other companies dealing with Parkinson’s disease, but eventually had to lower their proposal back towards its original estimate.
Intec has developed the Accordion Pill, which settles in the stomach and slowly releases drugs towards the upper part of the gastrointestinal tract. The technology has multiple applications for several fields in pharmacology; the firm’s flagship product is a pill to release Levodopa, a drug used in the treatment of Parkinson’s disease.
The IPO was implemented after the US Food and Drug Administration (FDA) approved Intec’s request for a Phase III clinical trial - a two-year-long process. Now potential investors, as well as potential strategic partners, have a more comprehensive picture of the expenditures and timetables still ahead before the product is officially approved for release.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2015
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