Inotek Pharmaceuticals, a biotech developing a small molecule eye drop therapy to treat glaucoma, filed on Wednesday with the SEC to raise up to $86 million in an initial public offering. The company is offering $46 million worth of 5-year convertible debt concurrent with the IPO.
Business
Glaucoma is a condition where the eye cannot properly drain fluid, leading to pressure on the optic nerve and progressive vision loss. In 2013, sales of glaucoma drugs were about $2.0 billion in the US and $5.6 billion worldwide. Inotek is developing a first-in-class adenosine mimetic, a small molecule drug delivered by once-daily eye drops, that is designed to lower intraocular pressure by restoring the eye's natural pressure control mechanism. Inotek is targeting patients who have had an inadequate or poorly-tolerated response to latanoprost, a prostaglandin analog (PGA), the current standard treatment for glaucoma. The company expects to complete its ongoing Phase 2 trial in the 1H15 and complete Phase 3 trials by early 2017. Inotek is also developing a treatment that combines its lead candidate with latanoprost, which it believes is superior to the PGA alone.
Eye-related biotech IPOs
Close peer Aerie Pharmaceuticals (AERI) raised $67 million in its October 2013 IPO and the stock has since gained 133% from the offer price. Aerie is also developing once-daily eye drops for glaucoma, except that its lead candidate is a Rho kinase inhibitor. Like Inotek, Aerie is developing its drug as a monotherapy as well as a combined treatment with latanoprost. 2014 IPO Ocular Therapeutix (OCUL), which is developing a sustained-release hydrogel platform for the delivery of PGAs, has gained 17% since its July IPO. Other eye-related biotech IPOs in 2014 have focused on wet AMD, dry eye disease and rare diseases (AAVL, PFNX, EBIO, AGTC).
The Lexington, MA-based company, which was founded in 1999, plans to list on the NASDAQ under the symbol ITEK. Inotek Pharmaceuticals initially filed confidentially on August 29, 2014. Cowen & Company, Piper Jaffray, Canaccord Genuity and Nomura Securities are the joint bookrunners on the deal. No pricing terms were disclosed.
