NeuroDerm set for $60-82m Nasdaq IPO

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NeuroDerm has developed a transdermal drug delivery system for the treatment of Parkinson's disease.

Rehovot-based central nervous system drug developer NeuroDerm today filed a revised prospectus with the US Security and Exchange Commission (SEC) and announced the value of the IPO on Nasdaq. The company will seek to raise between $60-82 million at a company value of between $236 million and $290 million, after money.

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

If and when NeuroDerm, and orthopedic drug developer PolyPid Ltd., which set the terms of its Nasdaq IPO last week, complete their IPO, it would mean that a record 10 Israeli biomed companies would have held Nasdaq IPOs in 2014.

NeuroDerm has developed a transdermal drug delivery system for the treatment of Parkinson's disease. The company's lead products achieve better results in maintaining uniform levels of the drug in the bloodstream, enabling more effective treatment of the disease with fewer side effects.

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 has only $1.6 million in cash but raised $17.8 million in August in a private placement through a convertible bond. The company has no revenue because it is still in the R&D stage. NeuroDerm lost $5.7 million in the first half of the year compared with $20.3 million in the corresponding period of 2013.

A rival company in the field, Civitas, was recently sold for $525 million.

Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2014

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

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