PaxMedica, (PXMD), Biopharma, Price Range: $5.50 – $6.50
No existing shareholders have indicated an interest to purchase shares at the IPO price, a common feature of successful life science IPOs. Also, the firm is very thinly capitalized. TheStreet’s opinion on the IPO is to AVOID it.
PaxMedica (PXMD) aims to raise $15 million from the sale of its common stock in an IPO, according to an amended registration statement.
As of March 31, 2020, the company had $249,804 in cash and $217,114 in total liabilities. (Unaudited, interim)
PXMD intends to sell 2.5 million shares of common stock at a midpoint price of $6.00 per share for gross proceeds of approximately $15.0 million, not including the sale of customary underwriter options.
Micro-cap neurodevelopment biotech PaxMedica ups share offering, adds warrants ahead of $15 million IPO – September 29, 2020
Source: IPO investment manager Renaissance Capital
PaxMedica, a Phase 2 biotech developing therapies for neurodevelopmental disorders, revised the terms of its upcoming IPO on Tuesday.
The Woodcliff Lake, NJ-based company now plans to raise $15 million by offering 2.6 million shares at a price range of $5.50 to $6.50. The company is also offering 2.0 million warrants, exercisable at the IPO price. Each share is being sold with three-quarters of a warrant. The company had previously filed to offer 2.5 million shares of common stock at a range of $5.50 to $6.50. At the midpoint of the range, PaxMedica will raise 5% more in proceeds than previously anticipated. Because the company is now offering warrants, PaxMedica is no longer eligible for tracking and will be excluded from Renaissance Capital’s stats.
The company’s lead candidate PAX-101, an intravenous formulation of suramin, is currently in a Phase 2B clinical trial at six sites in South Africa for the treatment of autism spectrum disorder (ADS), which affects more than 3.5 million Americans.
PaxMedica was founded in 2018 and plans to list on the Nasdaq under the symbol PXMD. The Benchmark Company is the sole bookrunner on the deal.
Developing treatments for neurodevelopmental disorders such as autism
The company is developing treatments for neurodevelopmental disorders such as autism.
PXMD is a thinly capitalized firm with an unorthodox trial effort.
Woodcliff Lake, New Jersey-based PaxMedica was founded to advance programs based on anti-purinergic therapies for neurodevelopmental disorders such as autism spectrum disorder [ASD] and Fragile X syndrome tremor-ataxia.
Management is headed by Chief Executive Officer Mr. Howard Weisman, who has been with the firm since March 2020 and was previously founder and Executive Chairman of Sofregen, a clinical-stage biomedical device firm in the reconstructive plastic surgery industry.