PhaseBio's IPO: What You Need To Know

Clinical-stage biopharmaceutical company PhaseBio recently filed for an initial public offering. The stock is expected to trade on the Nasdaq Global Market under the ticker symbol “PHAS.”

The Company

Founded in 2002, PhaseBio develops and researches treatments for orphan cardiopulmonary diseases. PhaseBio has two product candidates: PB2452 and PB1046.

PB2452 is a novel recombinant human monoclonal antibody antigen-binding fragment, according to PhaseBio's S-1 filing. The treatment is intended to reverse the activity of ticagrelor, a blood thinner. PhaseBio has completed a Phase 1 trial of the treatment in healthy patients ages 18-50.

The second candidate, PB1046, is a treatment for pulmonary arterial hypertension, which is caused by the narrowing of blood vessels and affects arteries in the lungs and the right side of the heart.

The Details

The company intends to raise gross proceeds of $86.25 million from the IPO, according to the S-1 filing. PhaseBio plans to offer 5 million common shares priced in a range of $12 to $14.

The biopharma said it plans to use net proceeds from the offering to advance PB2452 and PB1046, as well as to fund development for ELP technology and preclinical programs. This funding should facilitate sufficient cash for PhaseBio to finance every endeavor until 2020, the company said. 

At the midpoint of $13 per share, PhaseBio's market capitalization would consist of 34 percent cash and amount to $254 million. The main underwriters of the IPO are Citigroup, Cowen, Stifel and Needham & Co.

Agreements

PhaseBio has agreements with AstraZeneca AZN, Cormorant Asset Management, Rock Springs Capital, Mountain Group Partners and others, according to the S-1.

In September, the company announced the completion of a $34-million Series D financing round. PhaseBio also retains an exclusive agreement with Duke University, allowing for licenses under certain patent rights owned and controlled by Duke.

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