Revance Therapeutics Soars in Debut, While Egalet and Eleven Open Quietly

Feb 07 2014

SAN FRANCISCO, California—Three more biotech companies went public Thursday, continuing a surge of pharmaceutical companies to the public markets, though only one had an impressive debut.

Revance Therapeutics Inc., which is developing a topical alternative to Botox, soared to $26.85 by the end of its first day of trading, after pricing at the top end of its $14-$16 range.

The Newark, Calif., company previously raised $225 million from investors, according to VentureWire archives. Its principal venture backers include Essex Woodlands Health Ventures, NovaQuest Capital Management, Technology Partners and Vivo Capital, by order of their holdings of company shares.

The company wasn’t profitable in 2012 or the year before, posting a net loss of $58.3 million in 2012 on revenue of $717,000, compared with a net loss in 2011 of $44.9 million and revenue of $557,000.

Another company didn’t see the same first-day pop. Egalet Corp., which is developing morphine- and oxycodone-based therapies for pain in tablets that deter drug abuse, priced its IPO at $12 and didn’t budge, finishing at the same price by the end of trading.

Egalet ‘s major shareholders include Atlas Venture, Omega Funds, Sunstone Capital, Danish company Egalet AS, Index Ventures and Enso Ventures.

Egalet UK wasn’t profitable last year or the year before. In 2012, net loss was $5.4 million on revenue of $1.2 million, compared with a net loss of $6.5 million and revenue of $626,000 the previous year.

Eleven Biotherapeutics Inc., which is working on potential treatments for eye diseases, had a similarly quiet opening, pricing at $10 per share and finishing slightly higher at $10.85 per share. That was sharply down from its earlier estimate of $13 to $15. 
Eleven Biotherapeutics’ major investors include Third Rock Ventures, Flagship Ventures and Jafco Ventures.

In the nine months ended Sept. 30, Eleven’s net loss narrowed to $13 million on collaboration revenue of $824,000, compared with the same period the year before, when net loss was $14.6 million and revenue was nil.

A fourth biotech, infectious-diseases vaccine developer Genocea Biosciences Inc., priced on Wednesday at $12 a share and closed down $1 at $11, where it also ended Thursday’s trading.

Polaris Partners, Lux Ventures, S.R. One, Johnson & Johnson Development Corp., Crown Venture Fund, Skyline Venture Partners, Cycad Group, Auriga Ventures and Bill & Melinda Gates Foundation are major shareholders in Genocea.

VentureWire LifeSciences Newsletter, dated Friday, February 7th, 2014