NeuroDerm ups Nasdaq secondary offering to $58m

Nasdaq  picture: Bloomberg

NeuroDerm has developed a system for subcutaneous delivery of drugs for treatment of Parkinson's Disease

Drug development company NeuroDerm(Nasdaq:NDRM) today published additional details about its secondary offering. The company plans to raise $58 million, including greenshoe options (compared with the expected maximum of $50 million mentioned in the first prospectus for this flotation), at a share price of $15.60.

The NeuroDerm share is currently traded at $16.06, so the price in the offering may eventually be higher. The company held its IPO in November 2014, raising $45 million. The share has risen 60% since then, boosting the company's market cap to $272 million. The underwriters for the current offering are Jeffreys and Cowen & Co.

Managed by CEO Oded Lieberman, NeuroDerm's principal shareholders are chairman Robert Taub (19%), Uwe Wascher (17%), and Prof. Shmuel Cabilly (15.5%). Taub, a resident of Belgium and an active investor in the Israeli biomedical sector, is a cofounder of Omrix Biopharmaceuticals, sold to Johnson & Johnson for $438 million.

Like NeuroDerm, Omrix also entered the stock exchange at a substantially lower value than it initially sought (only $143 million). Also like NeuroDerm, its share posted exceptional rises in its first year of trading, and the company was eventually sold at triple its IPO value. Wascher is a close friend of Taub; the two men also jointly invested in a number of companies, including Omrix. Cabilly, an Israeli, was a researcher at Genentech who discovered a patented drug that gained that company hundreds of millions of dollars in royalties. He is also an active investor in the Israeli biomedical sector. NeuroDerm has developed a system for subcutaneous delivery of drugs for treatment of Parkinson's Disease as a substitute for the current oral delivery of the drug.

The company's clinical plan is undertaking a trial against the oral drug with the appropriate dosage of the drug for patients with severe cases of Parkinson's in the first half of 2015. At the same time, a trial is underway to test only the levels of the product in the blood. Results are expected by the end of the year, after which a Phase III trial will be necessary. The company hopes its product will be approved in 2018.

Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Nasdaq  picture: Bloomberg
Nasdaq picture: Bloomberg
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