SPY391.77+4.27 1.10%
DIA319.53+4.14 1.31%
IXIC13,597.97+132.77 0.99%

DJ A Busy Day for Biotech IPOs -- Barrons.com

· 02/04/2021 14:35
By Luisa Beltran

Four companies -- Sana Biotechnology, Landos Biopharma, Sensei Biotherapeutics, and Atotech -- all made their public debuts Thursday. Three of them are in the biotech space.

Sana Biotechnology (ticker: SANA), which delivered Thursday's biggest IPO, saw its shares rise as much as 54% from the offering price. The stock opened at $35 and peaked at $38.45. It recently traded at $36.41, up nearly 47%.

The Seattle company late Wednesday boosted the size of its deal, which priced above its expected range. Sana had initially expected to offer 15 million shares at $20 to $23, but increased its deal to 22 million shares at $23 to $24 on Feb. 3. Sana ended up raising $587.5 million after selling 23.5 million shares at $25 each. Morgan Stanley, Goldman Sachs, J.P. Morgan, and BofA Securities are underwriters on the deal.

Founded in 2018, Sana is developing cell-engineering platforms that use gene and cell therapy for treatments for cancer, diabetes, and central nervous system (CNS) disorders, among others. All of Sana's product candidates are in preclinical development, but the company plans to file multiple investigational new drug (IND) applications in 2022 and 2023, a prospectus said.

Steve Harr, Sana's founder and CEO, was formerly chief financial officer at Juno Therapeutics, which was sold to Celgene in 2018 for $9 billion. Bristol-Myers Squibb (BMY) subsequently bought Celgene for $74 billion in 2019. Harr was expected to have a nearly 5% ownership stake in Sana after the IPO. Sana has raised $705.5 million in funding, including $435.6 million in a Series B round in June.

Still, Sana has yet to generate any revenue, and losses have been widening. The company reported $172.1 million in losses for the nine months ended Sept. 30, up from $87.7 million in losses for the same time in 2019, a prospectus said. Sana has 240 full-time employees.

Sensei Biotherapeutics (ticker: SNSE) also began trading Thursday, with shares rising more than 39% from the offering price. The stock opened at $24.70 and hit a high of $26.50. It recently changed hands at $22.15.

Sensei collected $133 million Thursday after increasing the size of its deal and pricing above its range. The company sold seven million shares at $19 each, up from the 5.9 million shares at $16 to $18 that it had planned to offer. Citigroup, Piper Sandler, and Berenberg are underwriters on the deal.

Sensei is developing next-generation therapies to treat cancer. Sensei is conducting a 30-patient Phase 1/2 clinical trial for its lead product candidate, SNS-301, which aims to treat squamous cell carcinoma of the head and neck. Sensei isn't profitable, and losses have been widening. The company reported a nearly $15 million loss for the nine months ended Sept. 30, up from $10 million in losses for the same time period in 2019, a prospectus said. Like Sana, the company hasn't generated any revenue. Sensei did, however, receive a Paycheck Protection Program loan of $567,000 in May, the prospectus said. The company had 24 full-time employees as of Sept. 30.

Landos Biopharma (LABP) made its public equity markets debut Thursday to dismal results. The stock opened at $13, below its $16 offer price, and hit a high of $14.80. Shares recently changed hands at $13.60, down 15.2%, making the IPO a broken deal.

Late Wednesday, Landos collected $100 million after selling 6.25 million shares at $16, the midpoint of its $15 to $17 price range. J.P. Morgan, Jefferies, and SVB Leerink are underwriters on the deal.

Landos is developing oral therapeutics for patients with autoimmune diseases. Its lead product candidate, BT-11, aims to treat mild to moderate ulcerative colitis. BT-11 has completed the induction phase of a Phase 2 clinical trial, the prospectus said.

Losses for Landos widened to $18.8 million for the nine months ended Sept. 30, from nearly $10 million for the same time period in 2019, a prospectus said. The Blacksburg, Va.., company hasn't generated any revenue. It has 33 employees.

Atotech (ATC), the only non-biotech to make its market debut Thursday, saw its shares rise more than 7%. The stock opened at $17 and hit a high of $18.23. Shares recently changed hands at $17.67, up nearly 4%.

Atotech collected $498 million late Wednesday after cutting the size of its deal and pricing below its expected range. The company sold 29,268,000 shares at $17 each, down from the 34.15 million shares at $19 to $22 that it had planned to offer. Citigroup, Credit Suisse, BofA Securities, and J.P. Morgan are underwriters on the deal.

Atotech is a chemicals-technology company that offers equipment, service, and software that are used by customers in automotive, building products, heavy machinery, as well as household fixtures. The U.K. company's products and services can be found in several end markets: Atotech's surface-finishing and electronics are used by the automotive industry, while its communications applications are used by smartphones and in cloud computing, for example.

Atotech is profitable, although net income dropped 55% to $11.1 million for the three months ended Sept. 30, a prospectus said. That's down from $24.7 million in profit for the same time period in 2019. Revenue fell 6%, to $325.4 million, for the quarter ended Sept. 30. Atotech has about 4,000 employees globally, and plans to use proceeds from the IPO to pay off its nearly $2.2 billion in debt. Carlyle Group (CG) acquired Atotech for $3.2 billion in 2016 from Total. Carlyle will own nearly 75% of the company after the IPO.

Write to editors@barrons.com

(END) Dow Jones Newswires

February 04, 2021 14:35 ET (19:35 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.