Predix Pharmaceuticals sets initial IPO price talk at $10-$12 per share

By Ted A. Knutson

Washington, Sept. 30 - Predix Pharmaceuticals Holdings, Inc. set its initial price talk for its planned initial public offering of common stock at $10 to $12 per share for 5 million shares, according to an amendment to its S-1 filing with the Securities and Exchange Commission.

There is an over-allotment option for 750,000 shares.

Estimated proceeds to the company range between $49.2 million and $57.0 million.

UBS Investment Bank will be bookrunner for the deal with Deutsche Bank Securities as joint lead manager. Co-managers are CIBC World Markets and ThinkEquity Partners LLC.

Predix has applied to list its stock on the Nasdaq National Market under the symbol "PRDX."

Predix is a Lexington, Mass.-based pharmaceutical company focused on the discovery and development of highly selective, small-molecule drugs that target G-Protein Coupled Receptors and ion channels.

Its lead clinical-stage drug candidate, PRX-00023, completed a phase II clinical trial in patients with Generalized Anxiety Disorder in July.

Predix expects to begin screening patients for the first of at least two pivotal phase III clinical trials of PRX-00023 in early August.

The company's two other clinical-stage drug candidates are PRX-03140 for the treatment of Alzheimer's disease and PRX-08066 for the treatment of Pulmonary Arterial Hypertension. Both are in phase I clinical trials.

As of June 30, Predix's tangible net book value was $20.3 million, or $0.09 per share, based on 226,123,310 shares outstanding, after giving effect to the conversion of all its outstanding preferred stock into common stock on the closing of the IPO.

Predix will use the IPO to raise additional working capital to fund anticipated operating losses, establish a public market for its common stock and facilitate future access to the public markets.

Specifically, it will use the proceeds to fund continued clinical development of its drugs and for general corporate purposes.

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