Updated Monday, 6/15.
Following back-to-back eight-IPO weeks, the IPO market's summer surge continues with five IPOs scheduled for the week ahead. As expected, several companies launched on Monday with pricing set for later in the week.
Pharmaceutical royalty acquirer Royalty Pharma (RPRX) plans to raise $1.9 billion at a $15.8 billion market cap. The company is the global leader in pharma royalty agreements, with an estimated 50%+ historical market share, and has spent over $18 billion on royalty acquisitions since its inception to build a diverse portfolio of marketed and late-development-stage therapies. Royalty Pharma is highly profitable and generates strong cash flow, and it intends to pay a dividend with 2.3% yield at the midpoint.
Hematology and oncology biotech Forma Therapeutics (FMTX) plans to raise $200 million at a $676 million market cap. The company's lead candidate, FT-4202, is a once-a day oral treatment for sickle cell disease currently in a Phase 1 trial. Forma also has licensing agreements with Bristol-Meyer Squibb and Boehringer Ingelheim for possible NASH treatments.
Chinese cancer diagnostics provider Genetron Holdings (GTH) plans to raise $163 million at a $1.1 billion market cap. The company is China's third largest NGS-based cancer molecular diagnosis player by revenue and China's largest NGS-based cancer diagnosis and monitoring company by number of National Medical Products Administration approved IVD products, and it is expanding into early screening for liver cancer and other major cancer types.
Preclinical oncology biotech Repare Therapeutics (RPTX) plans to raise $125 million at a $589 million market cap. The company is using its CRISPR-enabled SNIPRx platform to discover and develop targeted cancer therapies forcusing on genomic instability. Repare intends to file an IND application in the 2Q20 for lead candidate, RP-3500, an oral small molecule inhibitor for the treatment of solid tumors.
Molecular diagnostics provider Progenity (PROG) plans to raise $100 million at a $721 million market cap. The company's current suite of products includes chromosomal and monogenic prenatal tests, preconception and early pregnancy tests, hereditary cancer screens, and anatomic and molecular pathology tests. Insiders have indicated on $50 million of the IPO.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Royalty Pharma (RPRX) New York, NY |
$1,855M $15,778M |
$25 - $28 70,000,000 |
JP Morgan Morgan Stanley |
| Buys royalty interests in marketed and late-stage biopharmaceuticals. | |||
| Forma Therapeutics (FMTX) Watertown, MA |
$200M $676M |
$16 - $18 11,764,706 |
Jefferies SVB Leerink |
| Phase 1 biotech company developing therapies for hematologic diseases and cancers. | |||
| Genetron Holdings (GTH) Beijing, China |
$163M $1,067M |
$11.50 - $13.50 13,000,000 |
Credit Suisse CICC |
| Uses molecular profiling to provide diagnostic services for cancer patients in China. | |||
| Progenity (PROG) San Diego, CA |
$100M $721M |
$14 - $16 6,666,667 |
Piper Sandler Wells Fargo |
| Sells in vitro molecular tests for prenatal and disease screening. | |||
| Repare Therapeutics (RPTX) Cambridge, MA |
$125M $589M |
$16 - $18 7,352,941 |
Morgan Stanley Goldman |
| Preclinical biotech developing gene therapies for solid tumors. | |||
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Street research is expected for and lock-up periods will be expiring for two companies.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 6/11/20, the Renaissance IPO Index was up 18.0% year-to-date, while the S&P 500 was down 7.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include DocuSign (DOCU) and Uber (UBER). The Renaissance International IPO Index was up 14.0% year-to-date, while the ACWX was down 13.3%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Adyen.
