DJ A Busy Day for Biotech IPOs -- Barrons.com
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, rose 40.4% in its first day of trading. The stock opened at $35, peaked at $38.45 and closed at $35.10.
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 to treat diseases such as cancer, diabetes, and central nervous system disorders, among others. All of Sana's product candidates are in preclinical development, but the company plans to file multiple investigational new drug 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, compared with $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. The stock opened at $24.70 and hit a high of $26.50. It ended at $18.90, a dime below its $19 IPO price, making it a broken deal.
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. It 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 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 closed at $12, off 25%, also making it 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 period in 2019, a prospectus said. The Blacksburg, Va.., company hasn't generated any revenue. It has 33 employees.
Atotech (ATC) was the only non-biotech to make its market debut Thursday. The stock opened at $17 and rose 13.24% to close at $19.25.
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 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 Luisa Beltran at firstname.lastname@example.org
(END) Dow Jones Newswires
February 04, 2021 17:56 ET (22:56 GMT)
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