PolyPid raises $60m at third IPO attempt

probiotics, antibiotics, clinical trial, bacteria  image: Shutterstock

The delayed drug release technology company raised more than it originally planned, and its share price rose after the offering.

Petah Tikva-based PolyPid (Nasdaq: PYPD), which has developed an implant for delayed release of antibiotics, has made a successful IPO on Nasdaq. Demand was strong, and the company issued slightly more shares than planned, in the middle of the price range it set, raising $60 million at a valuation of $272 million after money. If the underwriters exercise their options, the amount raised will increase to $70 million.

On Friday, the company's share price rose 18.75% to $19, giving the company a market cap of $323 million.

This was the company's third attempt at a flotation. It succeeded this time partly thanks to commitments from existing investors to invest $27 million out of the total amount raised. Moreover, the company sought approximately the same terms as in the past, but this time for a product that was more advanced.

The main investors in PolyPid before the offering were Morris Kahn's Aurum Ventures (15.6%); CHealth Ventures, controlled by Chaim Hurvitz (6.7%); the Friendly Angels Club group (5.2%); Shavit Capital (13.9%); Xenia Venture Capital (5.6%). Another substantial investor is Leon Recanati's GlenRock.

PolyPid's product is an antibiotic packed in a polymer (plastic-like molecules) and lipid (fat molecules) matrix; the company's name is derived from a combination of the two. The poly-pid carrier dissolves and releases the antibiotic in a measured dosage over a period of time that can be as long as several months. This makes it possible to avoid infection in the affected area of the body (following surgery or a fracture, for example), without taking any antibiotic orally or intravenously during the period, and without replacing an implant releasing a local antibiotic in repeated operations.

The company is in the midst of a Phase III trial aimed at obtaining US Food and Drug Administration (FDA) approval for its product. The trial is for the prevention of infection following cardiac surgery, and within the next few months the company is due to start a Phase III trial for the prevention of infection in abdominal surgery. The company has additional products applying its technology in initial stages of development.

Published by Globes, Israel business news - en.globes.co.il - on June 28, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

probiotics, antibiotics, clinical trial, bacteria  image: Shutterstock
probiotics, antibiotics, clinical trial, bacteria image: Shutterstock
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