Market Overview

Osmotica's IPO: What You Need To Know

Osmotica's IPO: What You Need To Know

Drug developer Osmotica Pharmaceuticals is expected to begin trading Thursday on the Nasdaq Global Market under the ticker symbol “OSMT.”

The Details

Over 60 percent of Osmotica's total revenues in 2017 and 80 percent of the first half of 2018 were produced by the sales of generic products. Revenue in 2017 totaled $245.7 million, and future profitability depends on the company’s ability to introduce new products on a timely basis, according to the S-1 filing.

Osmotica is offering 8.3 million ordinary shares in a price range of $14 and $16 per share to raise $125 million in gross proceeds.

Update: The company announced Oct. 17 it now plans to raise $58 million by offering 8.3 million shares at a price of $7.

The company intends to use the net proceeds from the sale to repay $100 million in debt, in addition to the use of working capital and other corporate purposes.

The main underwriters for the initial public offering include Jefferies, Barclays, RBC Capital Markets and Wells Fargo Securities.

The Company

The biopharmaceutical company develops and commercializes specialty products and treatments. Key markets include neurology, women’s health and non-promoted products. As of June 2018, Osmotica has five commercialized products.

“We plan to expand our presence selectively into adjacent diseases and therapeutic areas, such as multiple sclerosis and ophthalmology, for which we currently have two NDA candidates in Phase III clinical trials: Ontinua ER for muscle spasticity in multiple sclerosis patients and RVL-1201 for blepharoptosis, or droopy eyelid,” the company said.

Osmotica expects data from the Phase III trial of Ontinua ER to be available by mid-2019, potentially marking the first non-surgical treatment approved by the FDA for blepharoptosis, according to the S-1 filing.

Osmotica’s public offering will occur alongside fellow biotech companies Allogene Therapeutics and Equillium.

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