Skip to main content

Market Overview

The Axcella Health IPO: What You Need To Know

Share:
The Axcella Health IPO: What You Need To Know

The Street can't get enough biotechs. Here's the latest firm to join the company of hundreds.

The IPO

Axcella Health Inc. will issue more than 3.57 million shares on the Nasdaq under ticker AXLA, according to the firm’s S-1 filing. Priced between $20 and $22, the offering represents 15.5 percent of outstanding shares and is expected to bring in about $90.4 million.

Underwriters include Goldman Sachs, JPMorgan and SVB Leerink.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

The 11-year-old biotech company develops therapies for dysregulated metabolism.

In 2018, three of its six candidates generated positive results in non-IND clinical studies for hepatic insufficiency and non-alcoholic fatty liver disease (NAFLD). Axcella intends to launch a Phase 2b/3 clinical trial in the back half of 2020 for its lead candidate, AXA1665, in hepatic encephalopathy.

The lab has three other candidates in pre-clinical or non-IND studies targeting pediatric NAFLD, sickle-cell disease and limb immobilization-induced acute atrophy.

The Finances

In 2018, management recorded $36.07 million in net loss against the previous year’s rate of $30.94 million. Axcella has not yet generated revenue.

By the end of last year, it had accumulated $26 million in debt and received $197.8 million in stock sales to fund operations.

Related Links:

IPO Outlook For The Week: Uber (And 11 Others)

The Week Ahead In Biotech: Conferences, Clinical Trial Readouts, Earnings And IPOs

 

Related Articles (AXLA)

View Comments and Join the Discussion!

Posted-In: Biotech News Previews IPOs Trading Ideas General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com