PaxMedica files IPO plans

Biotechnology company PaxMedica has filed a registration document with the US Securities and Exchange Commission for an initial public offering (IPO).

The company is developing phase two therapies for neurodevelopmental disorders, with its lead candidate PAX-101, an intravenous formulation of suramin, currently in phase 2B clinical trial at six sites in South Africa for the treatment of autism spectrum disorder.

PaxMedica plans to list on Nasdaq under the ticker symbol PXMD and has set a placeholder of USD 17.00 million to calculate registration fees.

Terms of the deal were not disclosed and the news comes after the company filed confidentially on 15th May 2020.

The Benchmark Company is the sole bookrunner for the share sale and will be granted an overallotment option, once details of the listing have been unveiled.

Founded in 2018, New Jersey-based PaxMedica plans to use the proceeds of this offering to further product development and for working capital and general corporate purposes.

In the three months ended 30th March 2020, the group posted a net loss of USD 275.22 million, compared to a loss of USD 114.38 million in the corresponding period of 2019.

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Zephyr, the M&A database published by Bureau van Dijk, shows there have been 30 IPOs of pharmaceutical and medicine manufacturers announced worldwide in 2020 to date.

In the largest of these, China’s Guobang Pharma intends to list on Shanghai Stock Exchange and raise CNY 2.76 billion (USD 390.36 million) in proceeds.

Vaxcyte, in the second-biggest flotation, intends to fetch USD 288.00 million in an IPO on Nasdaq.

The third, fourth, fifth and sixth-largest deal involved Chinese companies: Beijing Shenogen Pharma Group, Shan Dong Kexing BioProducts, Youcare Pharmaceutical Group and Shanghai Allist Pharmaceuticals.

Other businesses such as Germany’s PharmaSGP, US-headquartered Imara and South Korea’s Korea Pharmacy also announced IPOs in 2020 to date.

© Zephus Ltd

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