Innate Pharma IPO: What You Need To Know

A commercial-stage French biotech with expertise in oncology drug development is testing the IPO waters this week.

The IPO Terms

France-based Innate Pharma S.A. is proposing to offer 10.67 million shares in a global offering in the form of ADSs in the U.S. Each ADS represents the right to receive one ordinary share of the company, according to a F-1/A filing.

Based on the Oct. 3 closing price of 6.85 euros per share of its ordinary shares listed on Euronext Paris, the company expects to price its U.S. IPO at $7.50 per ADS.

At the estimated price of $7.50 per ADS, the offering is expected to raise gross proceeds of $80.03 million.

The company said it expects to use the net proceeds to advance the clinical development of its lead product candidate monalizumab and also for the advancement of the clinical development of IPH4102 for the treatment of Sezary syndrome, MF and PTCL.

It also intends to use the proceeds for the development of IPH5401 for treating solid tumors, including non-small cell lung cancer and hepatocellular cancer, and to build the commercial capabilities for Lumoxiti.

Innate Pharma also said it will concurrently offer ordinary shares in Europe and countries outside of the U.S. in a private placement.

The company said it has applied for listing its shares on the Nasdaq under the ticker symbol "IPHA."

Citigroup, SVB Leerink and Evercore ISI are the underwriters for the offering.

The Company

Innate Pharma is a biotech company focused on developing first-in-class therapeutic antibodies designed to harness the immune system for the treatment of oncology indications. It credits itself to be the pioneer in understanding natural killer cell, or NK cell, while also having expertise in tumor microenvironment, tumor antigens and antibody engineering fields.

Innate Pharma has an approved product, three clinical product candidates and a robust preclinical pipeline.

Source: F-1 filing

It has ongoing collaborations with big pharma companies such as AstraZeneca plc AZN and Sanofi SA SNY, and has received $550 million in aggregate upfront and milestone payments and equity investments from its collaborators over the past 10 years.

The Financials

For the fiscal year 2018, Innate Pharma reported revenues and other income of 93.95 million euros, up 113.4% year-over-year. The company reversed from a loss of 48.39 million euros in 2017 to a profit of 3.05 million euros in 2018.

The company's revenues climbed a solid 157% in the six months ended June 30 to 59.16 million euros and it reported a profit of 13.24 million for the half-year period compared to a loss of 15.12 million euros a year earlier.

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