Neothetics, a biotech targeting fat reduction with an injectable formulation of an approved asthma drug, announced terms for its IPO on Monday. The San Diego, CA-based company plans to raise $60 million by offering 4.3 million shares at a price range of $13 to $15. At the midpoint of the proposed range, Neothetics would command a fully diluted market value of $198 million.
The company has completed Phase 2 trials for LIPO-202, its lead candidate that is intended to reduce "subcutaneous fat in the central abdomen that is often characterized by people as love-handles, a pot-belly, a pouch or stomach rolls." LIPO-202, which is injected into the abdomen as an elective procedure (not reimbursed), is a formulation of salmeterol xinafoate, the approved drug in GlaxoSmithKline's (GSK) Advair inhaler for asthma.
Founded in 2007, Neothetics plans to list on the NASDAQ under the symbol NEOT. Piper Jaffray and Guggenheim Securities are the joint bookrunners on the deal. It is expected to price during the week of November 17, 2014.
