Sign in Subscribe
Biotechnology industries

Biotech IPO Market Faces Skepticism Amid Waning Entusiasm

Strategic Insights

— 1 min read

Momenta Pharmaceuticals, a Cambridge, Massachusetts-based biotechnology company, plans to raise $86.15 million in an initial public offering (IPO), while CoTherix, a Belmont, California-based biopharmaceutical company, seeks to raise an estimated $70 million. However, the biotech IPO market is facing skepticism due to concerns over the strength of recent IPOs, particularly in the biotech sector. Momenta's filing comes as Peninsula Pharmaceuticals, another biotech company, has indefinitely delayed its IPO, and Xcyte Therapies has pushed its offering to a later date.

Key Takeaways:

  • Momenta Pharmaceuticals expects to raise $86.15 million in its IPO, with the net proceeds going toward developing and commercializing its lead product candidate, an improved version of Lovenox.
  • CoTherix, a biopharmaceutical company, is planning to raise an estimated $70 million in its IPO, with the proceeds dedicated to developing and marketing its lead product candidate, Ventavis.
  • Both companies have significant losses, with Momenta reporting a net loss of $9.8 million in 2003 and CoTherix not providing financial information in its filings.
  • Momenta has a strong backing from investors, with Polaris Venture Partners III LP owning 25.5% and Atlas Venture owning 19.2% of the company.
  • Both companies are targeting the Nasdaq exchange, with Momenta seeking the ticker symbol MNTA and CoTherix aiming for CRTX.

Statistics:

  • Momenta Pharmaceuticals expects to file an abbreviated new drug application with the U.S. Food and Drug Administration within the next 12 months.
  • CoTherix obtained exclusive U.S. licensing rights for its lead product candidate, Ventavis, from Schering AG in October 2003.
  • Availability of financial information:

+ Momenta Pharmaceuticals saw its net loss increase to $9.8 million in 2003 from $5.4 million in 2002.

+ CoTherix's IPO is expected to raise an estimated $70 million, while Momenta's IPO will seek to raise $86.15 million.

Sources:

  • "Momenta Pharmaceuticals Inc." (SEC Filing, March 11)
  • "CoTherix Inc." (SEC Filing, March 11)
  • "Peninsula Pharmaceuticals, CoTherix, Xcyte - Q&A" (TheDeal.com)

Read more