Emerging Cancer Drug Company Athenex sets IPO price
In a few years the cancer drug market will be a billion-dollar industry. In fact, experts say that the market will be worth $150 billion by 2020. Because cancer is serious and lethal, and affects so many people, many firms have spent millions researching cancer treatment drugs. Another bright side is that there are many types of cancer. Therefore, different firms can develop various ways of dealing with each one.
One company that’s taking a unique approach to developing cancer drugs is Athenex Inc. Athenex Inc. is a drug company that was founded in 2003 under the name Kinex Pharmaceuticals. In 2015, Kinex Pharmaceuticals was rebranded Athenex Inc. That was after it sold some of its preferred shares to various investors. These private investors included individuals, venture capitalists and institutions like Pharminex Pharmaceuticals. Athenex received $225 million in investment funding that year. And like most companies that swim against Athenex in the cancer drug market, the firm poured all this money into research. Athenex also developed some of its proprietary active pharmaceutical ingredients and cancer drugs with the money.
Athenex company just got FDA approval to move some of its main products into human clinical trials. At the moment, seven Athenex-produced drugs are in the US drugs approved list, well on their way to their Phase III trials. Now, trials cost money and that means that Athenex needs some serious cash before it can have its trials. The company decided to launch an IPO to get that money.
Athenex announced on Friday that it would launch on the NASDAQ market under the stock label ATNX. What the public did not get to know is how many shares Athenex planned on foisting on them and for how much. However, Athenex did announce that it hoped to raise about $100 million in its initial offering to the public. Athenex will hopefully do so with Credit Suisse, JP Morgan, and Deutsche Bank as its deal underwriters.
Athenex Inc. has had about $375 million in funding to date. Most of these money has been used to produce and test the company’s drugs. Some of it was even used to buy up marketing and manufacturing infrastructure for the drugs. As it stands now, any drugs that the company produces will have a global market. Most of the market will be in China because the Buffalo-based firm has several plants in the region. If you were thinking of investing in Athenex then this is a good thing. Not only are Athenex’s drugs are in the last phases of their testing but the firm also has a marketing plan for them ready.
Another thing going for Athenex is that it’s a unique company among oncology drug firms because unlike most, Athenex research focuses on a proprietary oral drug alternative. Uniqueness is good for an investor. It means you’ll definitely be seeing returns in future.
Athenex will use its IPO proceeds to develop its primary drug candidates. Additionally, some funds will go into researching more cancer oral alternatives through the firm’s Orascovery and Src Kinase Inhibitors research platforms. The rest will be used for general corporate purposes.