The Cortexyme IPO: What You Need To Know

Four new biotechs hit the market May 9. Here’s one of them.

The IPO

Cortexyme, Inc. will issue more than 4.41 million shares on the Nasdaq under ticker CRTX, according to the firm’s S-1 filing. Priced between $16 and $18, the offering represents 17 percent of outstanding shares and is expected to bring in about $91.33 million.

Underwriters include Bank of America Merrill Lynch and Credit Suisse.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

Cortexyme develops therapies for neurodegenerative diseases by targeting Porphyromonas gingivalis. The bacterial pathogen has been found in the brains of more than 90 percent of Alzheimer’s patients, according to the firm’s prospectus.

Its lead candidate, COR388, entered Phase 2/3 clinical trials in April for treatment of Alzheimer’s disease. Management expects top-line results by the end of 2021. Cortexyme maintains the rights to the drug and holds a U.S. patent for exclusive development through 2035.

The Finances

In 2018, Cortexyme recorded a net loss of $12.48 million. The previous year saw a loss of $12.24 million. The firm has not yet generated revenue.

Operations have so far been supported by investors such as Pfizer Inc. PFE, Takeda Pharmaceutical Co Ltd TAK, Verily Life Sciences and Sequoia Capital.

Verily Life Sciences is owned by Alphabet, parent company of Google GOOG.

Related Links:

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Cortexyme Sees 4.4M Share IPO Prices $16-$18/Share