Argenx joins in Pharmaceutical April IPO Wave
The US stock markets have been very active in the past month. Both foreign and domestic firms have been in a rush to list after the end of their first quarters. Reasons for the IPOs have been varied. Some companies wanted to recoup their losses so they filed for IPOs. Others wanted to go public because they needed the cash influx. Maybe just to run the company, or to do more research. For Dutch-based Argenx, research definitely tops the list for joining in the April IPO frenzy of 2017.
Argenx is a biotech clinical-trial phase company that specializes in the development of therapies to curb autoimmune disorders and cancers. The company, like its US-based counterparts such as Tocagen, has not got past the research phase of its principal products into production. However, trials on the compounds have yielded promising reports in the past. Promising enough to generate interest to at least ensure the company gets a good return from its first issuance.
Argenx filed with the SEC to list on the NASDAQ market under the symbol ARGX. The company already operates in the OTC as ARGNF. The details for the pricing of the firm’s ADSs were not disclosed in the Friday IPO announcement, but the company did state that it hope to raise at least $75 million in the issuance, bringing it to an undisclosed market share capital value.
With the SEC filing on Friday Argenx joined the wave of pharmaceutical companies launching their first IPOs in April or at least filing for them. Another company that has seen the return include Tocagen, whose IPO returns will enable it to conduct further testing on a cancer-fighting drug. Verona and G! Therapeutics Holdings have also expressed interest in undertaking similar ventures.
With the capital from the public sale of its shares in the US, Argenx plans to conduct further tests on its chief products in preparation for sale in the public market. These compounds are the ARGX-110 and the ARGX-115.
The ARGX-110 will be going into its Phase 2 clinical trials after the IPO. The ARGX-110 was developed by Argenx to combat relapsing in Cutaneous T-Cell Lymphoma (CTCL) in patients. Argenx developed the formula by analyzing its effects on the immune system of llamas. Introducing compounds to llamas and studying the reaction of various cells helps simulate how the same substance will work on human subjects. The ARGX-115, on the other hand, will be going into one of its last human clinical trials. This product has already received acclaim in the Netherlands for its role in the fight against cancer. It works by kick-starting the body’s immune system cells into attacking cancer cells, thereby making them cancer antibodies.
The success or failure of the Argenx IPO will determine the company’s prominence in the internationally competitive pharmaceutical market. A favorable IPO will have the ARGX-110 and -115 in the market sooner, which would mean more returns for Argenx.
There are shadows on the Argenx IPO because the company doesn’t have another source of revenue. The decision to enlist on the US market also pushed down Argenx shares’ value, which reported a 1.1% drop in value by close of business Friday.