The Nextcure IPO: What You Need To Know

Last year, Eli Lilly And Co LLY made an investment in NextCure. This year, you can, too.

The IPO

NextCure this week is expected to issue 5 million shares on the Nasdaq under ticker NXTC, according to the firm’s S-1 filing. Priced between $14 and $16, the offering represents 22.8 percent of outstanding shares and is expected to bring in about $92 million.

Underwriters include Morgan Stanley, Bank of America Merrill Lynch and Piper Jaffray.

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

The Company

Headquartered in Maryland, the clinical-stage biotech company develops immunotherapies targeting tumor environments.

NC318 is expected to complete Phase 1 trials for tumors and macrophages in the fourth quarter of this year, with Phase 2 results following in the last quarter of 2020. Management expects to submit an IND for NC410 and initiate a Phase 1/2 trial in the first quarter of 2020.

NextCure recently entered a multi-year collaboration agreement with Eli Lilly to develop its proprietary drug platform, FIND-IO.

The Finances

In 2018, NextCure reported a net loss of $22.8 million, which grew from the previous year’s loss of $15.47. Management has not yet generated revenue.

So far, it has financed operations through $164.4 million in stock sales, $5 million in loans, and payments from Eli Lilly.

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