Biotech New Deal Calendar

WEEK OF APRIL 10

MEDTRONIC INC. (NYSE: MDT): Rule 144A; $4 billion of convertible bonds (A1/AA-) in two equal $2 billion tranches, both with net share settlement and full takeover protection; greenshoe of $400 million split equally; tranche 1 due 2011, non-callable, talked to yield 0.75% to 1.5% with 10% initial conversion premium and 140% contingent conversion threshold; tranche 2 due 2013, non-callable, talked to yield 1.0% to 1.75% and initial conversion premium of 10% with 140% contingent conversion threshold; Minneapolis-based medical device company to use proceeds to repurchase $2.5 billion of common stock, some from participants of the bond offering, and for general corporate purposes; will also enter into hedge and warrant transactions to mitigate dilution; joint global-coordinators are Banc of America and Morgan Stanley; joint bookrunners are Merrill Lynch, Banc of America, Morgan Stanley, Citigroup, Deutsche Bank and Goldman Sachs; lead manager is UBS; co-managers are ABN Amro, BNP Paribas, Mitsubishi UFJ, Mizuho International, US Bancorp, Wachovia and Wells Fargo; pricing after the market close Wednesday.

OMRIX PHARMACEUTICALS INC. (Nasdaq: OMRI): initial public offering of 3,437,500 shares of common stock; greenshoe of 515,625 shares available; proposed at $15 to $17 a share; net proceeds estimated at $49 million at the midpoint of price talk; New York company develops and markets biosurgical and passive immunotherapy products; proceeds to expand manufacturing capabilities, to fund a plan to penetrate the market for biosurgical products in Japan and other countries and for general corporate purposes; joint lead managers are UBS Investment Bank (bookrunner) and CIBC World Markets; Leerink Swann & Co. and Oppenheimer & Co. are co-managers.

TARGACEPT INC. (Nasdaq: TRGT): initial public offering of 5 million shares of common stock; greenshoe of 750,000 shares available; proposed at $11 to $13 per share; Winston-Salem, N.C.-based company is engaged in the design, discovery and development of a new class of drugs to treat multiple diseases and disorders of the central nervous system by selectively targeting neuronal nicotinic receptors; at the midpoint of price talk, net proceeds are estimated at $63.1 million if the greenshoe is fully exercised; proceeds to be used to fund clinical trials, research and development and general corporate purposes; Deutsche Bank Securities is bookrunner; Pacific Growth Equities LLC, CIBC World Markets and Lazard Capital Markets will be co-managers.

VANDA PHARMACEUTICALS INC. (Nasdaq: VNDA): initial public offering of 5.75 million shares of common stock talked at $12.00 to $14.00; greenshoe of 862,500 shares available; net proceeds estimated at $67.2 million at the midpoint of price talk; Rockville, Md.-based company focuses on product candidates for central nervous system disorders with a portfolio of drugs including Iloperidone for schizophrenia, VEC-162 for insomnia, VSF-173 for excessive daytime sleepiness; proceeds will be used for research, preclinical development and clinical trials; pre-IPO, Care Capital Investments II is the leading shareholder with 9.17 million shares, or 22.8%, following by Domain Partners with 8.13 million shares, or 20.2%; bookrunner is JP Morgan with Banc of America Securities LLC as joint lead; Thomas Weisel Partners LLC is co-manager.

WEEK OF APRIL 24

QUATRX PHARMACEUTICALS CO. (Nasdaq: QTRX): initial public offering of 6 million shares; greenshoe of 900,000 shares available; proposed at $11 to $13 per share; proceeds, estimated at $75.4 million at the midpoint of guidance including the full greenshoe, to be used for clinical trials and general corporate purposes; Ann Arbor, Mich.-based biotech focuses on compounds in the endocrine, metabolic and cardiovascular therapeutic areas; joint lead managers are Banc of America Securities (bookrunner) and Cowen & Co., co-managers are Lazard Capital Markets and Pacific Growth Equities, LLC.

IPOs ON THE HORIZON

ACHILLION PHARMACEUTICALS: (Nasdaq: ACHN): initial public offering; proceeds estimated at $75 million; no other estimates given; New Haven, Conn.-based biotech, focused on infectious diseases such as HIV and hepatitis C, to use proceeds to continue development of drug candidates; biggest pre-IPO investors are Atlas Venture Fund V, LP and affiliates with 22.11%, Schroder Ventures International Life Sciences Fund II with 19.30%, Advent International Corp. with 12.68% and Bear Stearns Health Innoventures, LP and affiliates with 12.30%; Cowen & Co. is bookrunner, CIBC World Markets is joint lead; JMP Securities is co-manager.

ALPHATEC HOLDINGS INC. (Nasdaq: ATEC): initial public offering; estimated proceeds of $149.5 million; Carlsbad, Calif.-based Alphatec, a medical device company concentrating on products for the surgical treatment of spine disorders, will retain up to $65 million of proceeds; otherwise, proceeds will be used to expand sales and marketing activities, support research and development, fund the clearance or approval and subsequent commercialization of its near-term product candidates, repay borrowings under its revolving credit facility with Bank of the West and to repay a loan from chief executive officer Shunshiro "Roy" Yoshimi; any proceeds from a greenshoe are required to be used to redeem the company's new redeemable preferred stock; bookrunner is First Albany Capital.

AMPHASTAR PHARMACEUTICALS INC. (Nasdaq: AMPR): initial public offering of common stock; proceeds estimated at $115 million, but no per-share price range yet; the company issued 675,676 shares in a private placement in February 2005 at $14.80 per share; Rancho Cucamonga, Calif.-based company has 66 generic and branded injectable and inhalation products in the market, such as Primatene Mist; proceeds are earmarked to fund continued development of product candidates, to upgrade, renovate and equip an additional manufacturing and development building and general corporate purposes such as potential acquisitions; underwriters are Lehman Brothers, UBS Investment Bank (joint books) and Citigroup Global Markets Inc.

BIOMIMETIC THERAPEUTICS INC. (Nasdaq: BMTI): initial public offering; $50 million of common stock; Franklin, Tenn.-based company has a pipeline of product candidates for the repair and regeneration of musculoskeletal tissues in periodontal bone defects, orthopedic applications and sports injuries to cartilage, ligament and tendon; company has licensed patents from ZymoGenetics Inc., an exclusive manufacturing agreement with Chiron Corp. and has partnered with Luitpold Pharmaceuticals, Inc. for the worldwide marketing and distribution of GEM 21S; proceeds slated for research and development, license additional molecules and matrix materials, commercialize GEM 21S, hire additional employees and general corporate purposes; biggest pre-IPO investors are Burrill Biotechnology Capital Fund, LP with 21.7%, Novo AS with 15.6% and Holden Capital, LLC with 13.6%; underwriters are Deutsche Bank Securities, Pacific Growth Equities, LLC, First Albany Capital and A.G. Edwards.

BIONUMERIK PHARMACEUTICALS INC. (Nasdaq: BNPI): initial public offering of 5 million shares with 750,000 greenshoe; proposed at $14 to $16 per share; San Antonio-based company develops Tavocept as an investigational new drug to prevent or mitigate neuropathy and BNP 1350 as an antitumor chemotherapy drug; proceeds earmarked to complete Tavocept manufacturing and commercialization, advance phase 3 clinical trials for BNP 1350, working capital and other general corporate purposes; underwriters are UBS Investment Bank (books) with co-managers Needham & Co., Leerink Swann & Co., and Punk Ziegel & Co.

CLEVELAND BIOLABS INC. (Nasdaq: CBLI): initial public offering of common stock; gross proceeds estimated at $13.8 million; Cleveland-based firm is focused on developing a drug to protect humans from the effects of exposure to radiation, whether as a result of military or terrorist acts or as a result of a nuclear accident; proceeds will be used to commercialize CBLB502 - a series of Protectans that are modified proteins of microbes and tumors that protect cells from apoptosis - to continue other drug development and for general corporate purposes; Sunrise Securities Corp. is bookrunner.

LUNA INNOVATIONS INC. (Nasdaq: LUNA): initial public offering; proceeds estimated at $57.5 million; no other estimates given; Roanoke, Va.-based company is involved in research, development and commercialization of innovative technologies in molecular technology solutions and sensing solutions, such as magnetic resonance imaging, or MRIs; proceeds slated for working capital, capital expenditures, other corporate expenses and potential acquisitions; biggest pre-IPO investors are Carilion Health System with 35.5% and Luna founder, chief executive, treasurer and chairman Kent Murphy with 43.9%; bookrunner is ThinkEquity Partners LLC; co-managers are WR Hambrecht & Co. and Merriman Curhan Ford & Co.

MOLECULAR INSIGHT PHARMACEUTICALS INC. (Nasdaq: MIPI): initial public offering; proceeds estimated at $57.5 million; Piper Jaffray and SG Cowen & Co. are joint bookrunners; Oppenheimer & Co. and Roth Capital Partners are in the syndicate; Cambridge, Mass.-based company concentrates on developing molecular imaging pharmaceuticals and targeted radiotherapeutics targeting cardiology, oncology and neurology.

NORTHSTAR NEUROSCIENCE INC. (Nasdaq: NSTR): initial public offering; estimated $85 million of proceeds; no other estimates given; Seattle-based medical device company, focused on neurological diseases and disorders, to use proceeds for clinical trials, to build sales and marketing capabilities, working capital and other general corporate purposes; joint bookrunners are Citigroup and Cowen & Co.; co-managers are First Albany Capital and Leerink Swann & Co.

NOVACEA INC. (Nasdaq: NOVC): initial public offering; proceeds estimated at $75 million; South San Francisco company in-licenses, develops and commercializes cancer therapies; proceeds to fund product development, pre-launch marketing preparation for product candidates, identify and license new product candidates, general corporate purposes and working capital; joint bookrunners are Bear, Stearns & Co. Inc. and Cowen & Co.; Pacific Growth Equities LLC and HSBC Securities Inc. are co-managers.

PERLEGEN SCIENCES INC. (Nasdaq: PERL): initial public offering of common stock; proceeds estimated at $115 million; no other estimates given; Mountain View, Calif., company, formed in late 2000 as a spinoff from Affymetrix, Inc., develops genetically targeted medicines for therapeutic areas that include metabolic, cardiovascular, central nervous system and inflammatory diseases; current pipeline targets type II diabetes and dyslipidemia; pre-IPO majority owners are Affymetrix with 25.4%, Pfizer Overseas Pharmaceuticals with 13.3% and Maverick Capital with 8.1%; joint lead managers are Lehman Brothers (bookrunner) and Deutsche Bank Securities; co-managers are Piper Jaffray and Allen & Co. LLC.

REPLIDYNE INC. (Nasdaq: RDYN): initial public offering of common stock; estimated proceeds of $100 million; no other estimates given; Louisville, Colo., company is focused on anti-infective products; proceeds for clinical trials, research and development, future milestone payments to licensors and general corporate purposes; pre-IPO investors are HealthCare Ventures VI, LP and affiliates with 19.24%, TPG Biotechnology Partners, LP and affiliates with 12.46% and Morgenthaler Partners VII, LP with 10.48%; Merrill Lynch & Co. and Morgan Stanley are joint bookrunners; co-managers are Cowen & Co. and Pacific Growth Equities, LLC.

RESTORE MEDICAL INC. (Nasdaq: REST): initial public offering of 5 million shares of common stock; greenshoe of 750,000 shares; proposed at $11 to $13 per share; at midpoint, net proceeds estimated at $63.1 million if the greenshoe is fully exercised; St. Paul, Minn.-based medical device company makes the Pillar palatal implant system to treat sleep disordered breathing; proceeds earmarked for research and development; pre-IPO, the largest shareholder was MPM Capital with 3.98 million shares, or a 37.9% stake; joint lead managers are Deutsche Bank Securities (bookrunner) and First Albany Capital RBC Capital Markets is co-manager.

UPCOMING BANK CLOSINGS

CONMED CORP. (Nasdaq: CNMD): $250 million credit facility; JPMorgan; $100 million five-year revolver talked at Libor plus 175 bps; $150 million seven-year term B talked at Libor plus 175 bps; refinance existing debt; Utica, N.Y., medical technology company.

SEROLOGICALS CORP. (Nasdaq: SERO): $50 million six-year term loan A; also has increased its revolving credit facility to $50 million from $45 million and extended the term so that it matures in six years; revolver contains a $50 million accordion feature; Norcross, Ga.-based provider of consumable biological products to use funds to help finance its acquisition of Linco for $64.5 million in cash; JPMorgan is the lead bank; launched to investors on March 20.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.