search
Front > News

Mapi Pharma postpones and halves Nasdaq IPO

28 Jul, 2014 16:32
שלח תגובה במיילGali Weinreb

Mapi Pharma lowered the amount it will raise from $37 million to $20 million.

CORRECTION Drug developer Mapi Pharma, which was scheduled to complete a $37 million financing round at the end of last week, published a revised prospectus on Friday for raising only $20 million (including underwriters' options). The company value for the IPO was accordingly lowered to $120 million, after money.

Underwriter Aegis Capital is leading the IPO, with Chardan Capital as the secondary underwriter. The revised IPO is expected to take place this week, possibly in the next few days. Mapi reduced the offering because of market conditions and mostly because of Federal Reserve Chair Janet Yellen’s comment on valuations of biotech an social media companies.

The company, headed by CEO Ehud Marom, manufactures complicated-to-produce raw materials for generic drugs, and possesses a technological platform for delayed drug release. Mapi Pharma is seeking to use this platform to produce delayed release versions of Copaxone (made by Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA)) and a pain reliever.

The company is already in talks with some potential strategic partners, possibly with Teva itself, for the copaxone-like product. Mapi Pharma combines the risk of a startup with the limited dream of a generic company. The fact that the company is planning to locate at least some of its plants in Israel is only a minor element in the challenge it faces in its IPO. Even if Mapi Pharma raises only $20 million on Nasdaq, it will still be an impressive achievement.

The company had only $8 million in the bank at the end of March 2014.

Despite the prospectuses by biotech companies (not only Israeli ones) flooding Nasdaq , it appears that the enthusiasm for these offerings has subsided somewhat, compared with the first four months of 2014. Mapi Pharma was not the only one having a tough time last week; US company Atara also postponed its issue, and two other companies held their IPOs at the minimum price, and two more held their issue at below the minimum price. The above is a corrected version of an item that appeared on July 27, 2014

Published by Globes [online], Israel business news - www.globes-online.com - on July 28, 2014

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

Inflation credit: Tali Bogdanovsky Unexpectedly low February CPI reading cuts inflation

While inflation in Israel in the 12 months to the end of February 2025 is lower than forecast, housing prices continue to rise.

Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky Competition Authority allows Delek takeover of Isracard

The Competition Authority is considered the easier of the two regulatory hurdles that the deal must overcome, the other being the Supervisor of Banks.

David Amsalem credit Noam Moskowitz, Knesset Spokesperson's Office Rafael to pay state NIS 444m dividend

The minister in charge of the Government Companies Authority, David Amsalem, has approved the payment by the defense company.

Barak MX air defense system credit: IAI IAI profit jumps 55%

Israel Aerospace Industries posted a net profit of $493 million for 2024, and ended the year with an all-time high orders backlog of $25 billion.

A TSG system in tactical use credit: PR TSG signs cooperation agreement with US defense co

The agreement includes the integration of TSG's advanced technologies into sensor-based defense systems, which will be integrated into the operational systems of US defense units.

Bria CEO Yair Adato credit: Kseniia Poliak Israeli visual generative AI co Bria raises $40m

Bria’s Visual Generative AI platform empowers businesses to create predictable, controllable, and on-brand content that aligns with their visual language.

Amnon Shashua and Aviram Ziv credit: Eyal Izhar OrCam stymied by investor dispute with Shashua

Demands by institutional investors are blocking the visual and hearing impairment device developer's recovery plan.

Work on the Green Line credit: Bar Lavi Egged wins tender to operate TA light rail Purple, Green Lines

NTA awarded the tender to Egged, which already operates the Red Line, despite government ministry opposition to one operator for the entire network.

Gabi Seroussi illustration: Gil Gibli Board chooses Seroussi as IAI chair as Erdan freezes candidacy

Israel Aerospace Industries board chose Gabi Seroussi as chair even though he did not to go through the preliminary process of the Government Companies Authority appointments review committee.

Bavli Park penthouse credit: Eyal Tagar Tel Aviv Park Bavli penthouse sells for NIS 43m

A 44th floor penthouse in one of the two towers in businessman Yitzhak Tshuva's Park Bavli project has been bought by an Israeli businessperson.

El Al aircraft credit: Yoav Yaari El Al pilots receive nearly NIS 250,000 bonus each

Thanks to the agreements signed with the unions in 2018, El Al's employees as well as senior management share in last year's success.

Pentera CEO Amitai Ratzon credit: Eyal Izhar Israeli security validation co Pentera raises $60m

Pentera's platform enables security teams to analyze complete attack paths, identify root causes, and prioritize remediation for effective risk reduction.

Tel Aviv credit: Shutterstock Supply of unsold new homes hits record

Israel's real estate market is sliding into recession with 78,000 unsold new apartments in January, the Central Bureau of Statistics reports.

D&B chairman Doron Cohen and Meitar partner Dan Geva Meitar reclaims title of Israel's biggest law firm

Meitar has first place with 537 lawyers, followed by Herzog Fox Neeman with 512 lawyers, according to the latest Dun's 100 rankings.

First International Bank of Israel CEO Eli Cohen credit: Eyal Toueg First Int'l posts top return on equity

First International Bank of Israel's return on equity in 2024 was 19%, the highest among Israel's banks.

Dina Ben Tal Ganancia credit: Guy Kushi & Yariv Fein El Al almost quintuples profit

The airline posted a net profit of $545 million for 2024, 4.7 times the profit in 2023, and an all-time high.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018