Biotech IPOs Set to Heat Up Market as Eyetech Pharmaceuticals Leads the Pack

Strategic Insights -

IPO filings reveal Eyetech Pharmaceuticals is preparing to list on the market this week, with a quartet of initial public offerings, including Tel Aviv-based electronics payments systems provider Lipman Electronic Engineering, beverage cup company Radnor Holdings Corp., and real estate investment trust Government Properties Trust Inc. The most highly anticipated of the four IPOs comes from Eyetech, a New York-based drug company selling 6.5 million shares in a range of $18 to $20 per share. Investors in Eyetech include J.P. Morgan Partners, BB Biotech AG, Schroeder Ventures, MPM Capital, and Private Capital Partners, with analysts at Renaissance Capital citing "true blockbuster potential" for Eyetech's Macugen, a drug to treat age-related macular degeneration.

Key Takeaways:

  • Eyetech Pharmaceuticals is preparing to list on the market with a quartet of initial public offerings, including Lipman Electronic Engineering, Radnor Holdings Corp., and Government Properties Trust Inc.
  • Eyetech is selling 6.5 million shares in a range of $18 to $20 per share, with a potential valuation of $645.5 million from Pfizer Inc., which will co-promote Macugen and share in profits and losses.
  • Macugen has the potential to become a blockbuster drug with over $1 billion in annual sales, but Eyetech is developing its products in a crowded market with bigger and better-financed competitors.
  • Eyetech has an accumulated deficit of $123.8 million as of September 2003, but the company expects to reap net proceeds of $112.9 million from its IPO, which will be used for research and development, marketing, and general corporate purposes.
  • Radnor Holdings Corp. is selling 4.3 million shares at between $13 to $15 in an IPO on the Nasdaq, with net proceeds expected to be $54.8 million, which will be used to repay debt.
  • Government Properties Trust Inc. is selling 14 million shares in a $9 to $11 range, with net proceeds expected to be $128.7 million, which will be used for debt repayment and other corporate purposes.
  • Lipman Electronic Engineering Ltd. is listing on Nasdaq with an offering of 3 million shares at a price of $39.32, with net proceeds expected to be $118.4 million.
  • The IPOs are expected to list this week, with Eyetech pricing on Thursday and trading on Friday.

Statistics:

  • Eyetech Pharmaceuticals is selling 6.5 million shares in a range of $18 to $20 per share, with a potential valuation of $645.5 million from Pfizer Inc.
  • Macugen has the potential to become a blockbuster drug with over $1 billion in annual sales.
  • Eyetech has an accumulated deficit of $123.8 million as of September 2003.
  • Eyetech expects to reap net proceeds of $112.9 million from its IPO.
  • Radnor Holdings Corp. is selling 4.3 million shares at between $13 to $15 in an IPO on the Nasdaq, with net proceeds expected to be $54.8 million.
  • Government Properties Trust Inc. is selling 14 million shares in a $9 to $11 range, with net proceeds expected to be $128.7 million.
  • Lipman Electronic Engineering Ltd. is listing on Nasdaq with an offering of 3 million shares at a price of $39.32.

Sources:

  • TheDeal.com "Byline: Frances A. McMorris"
  • Eyetech Pharmaceuticals Inc.
  • Lipman Electronic Engineering Ltd.
  • Radnor Holdings Corp.
  • Government Properties Trust Inc.