Dermavant IPO: What You Need To Know

A dermatology-focused biotech with a lucrative Phase 3 asset is set to price its IPO this week.

The IPO Terms

Dermavant Sciences is planning to offer 7.7 million shares in an IPO and has indicated a price range of $12-$14 for the offering, its amended S-1/A filing on June 10 revealed. At the midpoint of the price range, the size of the offering is estimated at $100.1 million.

The company has sought to list its shares on the Nasdaq under the ticker symbol DRMT.

Dermavant is a subsidiary of Roivant Sciences – a pharma company owning a slew of subsidiary biotech and health technology companies.

Since Dermavant qualifies as an "emerging growth company" defined under the federal securities laws, it has elected to comply with certain reduced public company disclosure norms.

Jefferies, SVB Leerink and Guggenheim Securities are the underwriters for the IPO.

The Company

Dermavant is a clinical-stage biotech focusing on innovative therapies in dermatology, with both late- and early-stage product candidates. The company's pipeline targets mainly on psoriasis and atopic dermatitis, as well as other areas such as vitiligo, primary focal hyperhidrosis and acne.

Its lead product candidate tapinarof is a topical cream being evaluated for psoriasis and atopic dermatitis, and the company has commenced two pivotal Phase 3 trials of the pipeline asset in psoriasis in May 2019.

Apart from tapinrof, the company's pipeline consists of four novel product candidates – topical cerdulatinib, DMVT-504, DMVT-503, and DMVT-501.

The Finances

Dermavant reported a loss of $255.24 million in fiscal year ended March 2019 compared to a loss of $42.70 million in 2018.

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