Sign up USA
Proactive Investors - Run By Investors For Investors

IPO Roundup: Allogene IPO prices above high end of range, Livent pricing comes up short, while Audentes Therapeutics debuts

Allogene Therapeutics Inc raised $288 million by offering 18.4 million shares, putting a spotlight on the biotech IPO boom this year
Wall Street Sign
Allogene was started in 2017 by former Kite Pharma dream team Arie Belldegrun and David Cheng to change how cancer is treated

Allogene Therapeutics Inc (NASDAQ:ALLO) was expected to debut with a splash Thursday on the tech-laden Nasdaq after raising $288 million in its initial public offering, marking one of the biggest stock market debuts for a biotech this year.

The cell therapy developer sold 18.4 million shares Wednesday for $18 a share, within the high end of its projected range of $16 to $18.

Allogene was started by former Kite Pharma execs, Arie Belldegrun and David Cheng in 2017 to disrupt how cancer is treated. The goal of the biotech’s allogeneic cell therapy platform is simple: take the same biological processes that allow the first-generation autologous CAR T therapies to deliver breakthrough clinical benefits, but eliminate the need to create a personalized therapy for each patient.

“Our engineered T cells are allogeneic, meaning they are derived from healthy donors for intended use in any patient, rather than from an individual patient for that patient’s use, as in the case of autologous T cells. We believe this key difference will enable us to deliver readily available treatments faster, more reliably, at greater scale, and to more patients,” the company said in its IPO filing.

The biotech’s pipeline includes UCART19, its lead investigational product, in Phase 1 development for the treatment of relapsed or refractory acute lymphoblastic leukemia, as well as several preclinical allogeneic CAR T therapies.

Lithium producer Livent Corp (NYSE:LTHM) priced its initial public offering of 20 million shares at $17, which is below the expected range of $18 to $20 a share. The company is now set to raise $340 million.

IPO Roundup: Elastic’s soaring IPO boosts valuation, while First Trust rolls out an ETF that gives investors an exposure to Europe

Livent holds the lithium business of pesticides maker FMC Corp and the IPO is seen as a test of whether a pure-play lithium operation can stand on its own.

The offering comes as Livent leverages the global shift to renewable energy and the electric vehicle revolution by capitalizing on the ultralight battery metal used in making lithium-ion batteries for cell phones, electric vehicles and computers.

FMC saw a 46% jump in lithium sales in the second quarter and expects to produce roughly 21,000 tonnes of the metal this year, according to Reuters.

BofA Merrill Lynch, Goldman Sachs and Credit Suisse Securities are acting as joint book-running managers with an option to purchase up to three million additional shares.

Meanwhile, San Francisco-based Audentes Therapeutics Inc (NASDAQ:BOLD) opened at $28.34 Thursday after pricing its public offering of 5.2 million shares at $29 per share, for proceeds of $150.8 million.

The clinical stage biotechnology company is focused on developing and commercializing gene therapy products for patients living with life-threatening rare diseases.

It’s been a banner year for IPOs with 161 companies having priced so far this year, a nearly 50% jump from the same period last year, according to research firm Renaissance Capital. Biotech IPOs have been booming with 61 companies in the healthcare sector going public.

Biotech companies credit the business-friendly tax package for making it possible for Big Pharma to pour cash into licensing deals, mergers and acquisitions — making the prospect of rich exit strategies for biotech companies more tangible.

Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive

View full ALLO profile View Profile

Allogene Therapeutics Inc Timeline

Related Articles

picture of addict
November 15 2017
To build the UK's first £1bn, self-sustainable biotech is the aim for chief executive Clive Dix
1511901712_biotech_517925923.jpg
November 29 2017
The company has developed a "unique and superior pressure" cycling technology (PCT), says Zacks.
cholesterol on a dial
September 24 2018
"The formation of ProBiotix Health and appointment of Adam Reynolds as chairman continues a successful strategy of building value in each division which is materialised by forming separate legal entities and taking them to a public listing,” said chief executive Stephen O’Hara

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use