NeuroDerm Nasdaq IPO disappoints


The drug development company raised only $45 million at a company value of $164 million.

Rehovot-based NeuroDerm, which has developed a transdermal drug delivery system for the treatment of Parkinson's disease, had a disappointing IPO on Nasdaq yesterday. The company raised only $45 million by issuing 4.5 million shares at $10 per share, giving it a company value of $164 million, after money. The amount raised could rise to $50 million, if the underwriters take up their option to buy a further 675,000 shares in the next 30 days.

According to the prospectus it had filed, NeuroDerm had sought to raise $58-72 million at a company value of $290 million. In light of the failure of other Israeli biomed companies recently, NeuroDerm can at least take some comfort in that it did raise $45 million.

Jefferies and Cowen & Company acted as the joint bookrunners on the deal with Oppenheimer and Roth Capital acting as secondary underwriters. The company will trade under the NDRM ticker.

NeuroDerm's main shareholders include Omrix Biopharmaceuticals founder Robert Taub (28%) who serves as Chairman, Uwe Wascher (25.9%) a former GE senior executive and close friend of Taub and private investor Prof. Shmuel Cabilly (22.2%), while Capital Point Ltd. (TASE:CPTP) holds 16.6%.

NeuroDerm's product for treating Parkinson's disease is set for a Phase III trial in 2015. A product to treat more severe forms of Parkinson's is currently in a Phase IIa trial and if successfully completed will proceed to a Phase IIb trial in 2015.

Published by Globes [online], Israel business news - - on November 14, 2014

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

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