rEVO Biologics, which sells recombinant protein therapies to treat a rare blood clotting disorder, announced terms for its IPO on Thursday. The Framingham, MA-based company plans to raise $50 million by offering 3.6 million shares at a price range of $13 to $15. At the midpoint of the proposed range, rEVO Biologics would command a fully diluted market value of $261 million.
The company, which was originally formed as a subsidiary of Genzyme, completed an IPO in 2002 and was bought by French pharmaceutical company LFB Biotechnologies in 2010. LFB Biotechnologies intends to purchase $10 million worth of shares on the offering and invest $10 million in a concurrent private placement
rEVO currently markets ATryn, a treatment for blood clots during or after surgery or childbirth in patients with hereditary antithrombin deficiency (HD AT), a rare clotting disorder. The company also commenced enrollment for Phase 3 trials of ATryn in July 2014 for the treatment of preeclampsia, a pregnancy-related disorder than can cause organ failure, seizures, coma and death.
For the six months ended June 30, 2014, revenue fell 31% to $7 million due to lower related party service revenue, partially offset by higher product revenue. Operating loss widened to $11 million (from $8 million in the 1H13), driven by an increase SG&A spending.
rEVO restated its financial statements in an amended filing on July 28, 2014, and disclosed a material weakness in financial reporting, as it misclassified unearned revenue as related party service revenue.
rEVO Biologics, which was founded in 1993 and booked $18 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol RBIO. Piper Jaffray and Guggenheim Securities are the joint bookrunners on the deal. It is expected to price during the week of September 15, 2014.
