Wall Street welcomed three life science companies to the public markets this week. 10x Genomics led the way Wednesday, followed by SpringWorks Therapeutics and Satsuma Pharmaceuticals on Thursday. Combined, the three companies raised more than $595 million from their IPOs.
According to IPO research firm Renaissance Capital, 153 companies have filed the paperwork this year to go public. Of those companies that have completed IPOs, 48 have been in healthcare—more than any other sector. Here’s a look at the three life science companies that went public this week.
—The biggest IPO of the week belongs to 10x Genomics (NASDAQ: TXG), which raised $351 million. The Pleasanton, CA, company sold 9 million shares for $39 each, topping its revised $36 to $38 per share range. 10x Genomics had initially set a $31 to $35 per share range for the stock offering. Shares of 10x Genomics surged as much as 49 percent higher than the IPO price Thursday before closing at $53.
10x Genomics makes gene sequencing technology used by scientists and pharmaceutical companies for genomic research. In 2018, 10x Genomics recorded $146.3 million in sales, a more than 100 percent increase compared to the prior year, according to the IPO filing. But the company is not yet profitable. Its net loss for 2018 was $112.5 million. 10x Genomics said the IPO cash would provide it with cash for “general corporate purposes.” The filing also says some of the new capital could be used to acquire companies or technologies, though 10x Genomics adds that it does not currently have any commitments or agreements for acquisitions.
—SpringWorks Therapeutics raised $162 million to develop its pipeline of drugs for rare diseases and cancer. Thursday evening, the company priced its offering of 9 million shares at $18 apiece, which was the high end of its targeted price range. Those shares are expected to begin trading on the Nasdaq Friday under the stock symbol “SWTX.”
Stamford, CT-based Springworks spun out of Pfizer (NYSE: PFE) in 2017 with the rights to four compounds that no longer fit the pharmaceutical giant’s strategy. The most advanced of these drugs is nirogacestat, a cancer drug in late-stage testing as a treatment for desmoid tumors, which affect connective tissue. Preliminary Phase 3 data are expected in 2021. SpringWorks also plans to use the IPO proceeds to advance other compounds in its pipeline.
—Satsuma Pharmaceuticals reeled in $82.5 million to continue late-stage tests of its migraine treatment. Late Thursday, the South San Francisco-based company priced its offering of 5.5 million shares at $15 apiece, which was the midpoint of the $14 to $16 per share price range it had set.
The IPO cash will finance Phase 3 tests of STS101, a drug/device combination product that administers a dose of dihydroergotamine (DHE), a generic drug that has been used to treat acute migraine. Products are already available that administer DHE as a nasal spray. But Satsuma claims its dry powder formulation and inhalation device can dose patients more quickly and reliably than other products. The company expects preliminary data from its Phase 3 study in the second half of next year. Satsuma’s shares are expected to start trading Friday under the stock symbol “STSA.”