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IPO Outlook: Solar Power Company Array Technologies, Chinese Retailer Miniso Lead Possible 9 IPO Week

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IPO Outlook: Solar Power Company Array Technologies, Chinese Retailer Miniso Lead Possible 9 IPO Week

This week could see up to nine companies price their IPOs. Here is a look at the companies looking to go public this week.

Codiak Biosciences: Clinical stage biopharmaceutical Codiak Biosciences (NASDAQ: CDAK) plans to sell 5.5 million shares at a price point of $14 to $16. The company initiated clinical trials for its lead products in September to address solid tumors.

Codiak has collaborations with Jazz Pharmaceuticals (NASDAQ: JAZZ) and Sarepta Therapeutics (NASDAQ: SRPT). Jazz Pharmaceuticals paid Codiak $56 million upfront with $1 billion in tiered milestone royalties. Sarepta paid $10 million upfront and will pay up to $192.5 million per target in milestones along with tiered royalties.

Array Technologies: Trackers move solar panels throughout the day to maintain the optimal orientation of the sun. Array Technologies (NASDAQ: ARRY), one of the world's largest tracker manufacturers, plans to sell 33.75 million shares at a price point of $19 to $21. The majority of shares sold (26.75 million) will come from selling stockholders. 
Solar power is the fastest growing form of electricity in the U.S. with compound annual growth of 20% from 2014 to 2019. Trackers saw compound annual growth of 35% from 2017 to 2019.

Array Technologies reported revenue of $647.9 million in fiscal 2019, which was more than double the $290.8 million reported the prior year. Revenue for the first six months of 2020 was $552.6 million. The company reported net income of $39.7 million in fiscal 2019 and $76.1 million for the first six months of 2020.

Miniso Group Holding: Chinese retailer Miniso Group Holding (NYSE: MNSO) plans to sell 30.4 million ADS at a price range of $16.50 to $18.50. The company is one of the largest global branded variety retailers. Miniso has over 4,200 stores across 80 countries, opening its first store in China in 2013. There are more than 2,500 Miniso stores in China.
Revenue was $1.3 billion for the last fiscal year, which was down 4.4% year-over-year. The company saw nearly 68% of revenue from its operations in China.

Spinal Elements Holdings: Medical device company Spinal Elements Holdings (NASDAQ: SPEL) plans to sell 7.7 million shares at a price point of $13 to $15. The company helps with minimally invasive surgeries. Its main market of spine surgery is expected to grow globally from $17.6 billion in 2018 to $22.5 billion in 2024.

An area of growth for the company is expanding its international presence. Nine month revenue for the current fiscal year is expected to be $66.2 million to $66.6 million, down from $69.8 million in the prior year.

Opthea Ltd.: Clinical stage Opthea Ltd. (NASDAQ: OPTN), targeting retinal diseases, plans on selling 9.3 million ADS at a price of around $17. The company has a Phase 3 ready product with its OPT-302 targeting age-related macular degeneration. Two Phase 3 trials are expected to enter Phase 3 in the first half of 2021. Top line results are expected in 2023.

Ranibizumab (Lucentis) and Aflibercept (Eylea) are the current standard of care for Wet AMD, which effects 1 million people in the U.S. and 2.5 million in Europe. These two options accounted for $11.9 billion in sales in 2019. Lucentis is sold by Genetech, a Roche Holding (OTCQX: RHHBY), in the U.S. Eylea is sold by Regeneron Pharmaceuticals (NASDAQ: REGN).

Eargo Inc.: Hearing aid company Eargo Inc. (NASDAQ: EAR) plans to sell 6,666,667 shares at a price point of $14 to $16. The company believes it is the first and only virtually invisible, rechargeable, in-canal, FDA regulated hearing aid.

Over 42,000 devices have been sold by the company as of June. The company estimates 43 million adults in the U.S. suffer from some form of hearing loss, with only 27% owning a hearing aid.

Behind the ear hearing aids dominate the market with 88% share in 2019, compared to 12% for in the ear aids. Eargo has seen revenue grow at an average annual rate of 122.6% for the last three years with $32.8 million in fiscal 2019. The first six months of 2020 had revenue of $28.6 million. Third quarter revenue is estimated to be in the range of $18.0 to $18.3 million.

Praxis Precision Medicines: Clinical stage company Praxis Precision Medicines (NASDAQ:PRAX) is targeting depression, epilepsy, movement disorders and pain syndromes. The company’s lead candidate PRAX-114 is in Phase 2a trials. The company expects topline readouts from three of its five current programs by the end of 2021.

PRAX-222 is a pre-clinical collaboration with Ionis Pharmaceuticals (NASDAQ: IONS). Novo Holdings, a Novo Nordisk (NYSE: NVO) unit, is a top shareholder in the company along with Blackstone Group (NYSE: BX). The company plans on selling 7.4 million shares at a price point of $16 to $18.

Tarsus Pharmaceuticals: Clinical stage Tarsus Pharmaceuticals (NASDAQ:TARS) plans on selling 5 million shares at a price point of $15 to $17. The company’s lead drug is TP-03 in Phase 2b/3 trials as a treatment of blepharitis. A Phase 3 is expected to enter Phase 3 in 2021. If approved, this would be the first FDA approved treatment for Demoodex blepharitis. Tarsus Pharmaceuticals is also targeting lyme disease and malaria treatments in pre-clinical studies.

Allgos Therapeutics: Clinical stage biopharmaceutical company Allgos Therapeutics (NASDAQ:ALGS) plans on selling 10 million shares at a price point of $14 to $16. The company is targeting chronic Hepatitis B and non-alcoholic steatohepatitis (NASH).

Allgos also has a treatment it is targeting for SARS-Cov-2, the virus responsible for Covid-19. ALG-010133 is in Phase 1 trials for chronic Hepatitis B, a condition that effects 290 million people worldwide.
Novo Holdings and Roche are investors in the company.

 

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