ArtMarie
A short presentation of Alopexx
Alopexx (ALPX) has filed to raise $15 million in an initial public offering of its common stock, according to an S-1/A registration statement.
The company develops vaccines and monoclonal antibodies for various types of infections.
ALPX’s candidates have proven to be well tolerated as the company seeks to advance development into Phase 2 studies.
I will provide a final opinion when we learn more information about the IPO.
Alopexx overview
Based in Cambridge, Massachusetts, Alopexx was formed to develop vaccines and antibodies expressing the target poly-N-acetyl-glucosamine (PNAG) for the prevention and treatment of fungal, parasitic and bacterial infections.
Management is led by Co-Founder, President and CEO, Daniel R. Vlock, MD, who has been with the company since its inception and previously held senior medical and research positions at GPC Biotech, Pharmacia and Ethicon Endo-Surgery, a Johnson subsidiary , held & Johnson.
The Company’s lead candidates are vaccine AV0328, to treat pneumonia and meningococcal infections, and monoclonal antibody F598, to treat ICU-acquired infections and prevent postoperative abdominal infections.
Below is the current status of the Company’s drug development pipeline:
Corporate Pipeline (SEC EDGAR)
Alopexx has booked $4.95 million of investments in convertible debentures and equity at fair market value as of June 30, 2022 from investors including Daniel Vlock and Peter Werth.
Market & Competition by Alopexx
According to a 2022 market research report by Market Research Future, the global hospital-acquired infection treatment market was estimated at US$23.7 billion in 2020 and is projected to reach US$32.5 billion in 2030.
This equates to a projected CAGR (Compound Annual Growth Rate) of 1.37% through 2030.
Key elements driving this expected growth are aging populations, more susceptible to disease, and the arrival of the COVID-19 pandemic, which is raising awareness of the importance of infection control.
Also, the Americas region is expected to continue to account for the largest market demand by region, followed by Europe. The Asia-Pacific region is projected to grow at the highest growth rate through 2030.
Key competing vendors offering or developing related treatments include:
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Pfizer
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note
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GlaxoSmithKline
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Sanofi
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SK chemicals
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Affinivax
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Astellas
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A few others
Financial status of Alopexx
The company’s recent financial results are typical of a development-stage biopharmaceutical company in that they show no revenue and material R&D and G&A expenses related to its drug development efforts.
Below are the Company’s financial results for the last two calendar years:
Company Income Statement (SEC EDGAR)
As of June 30, 2022, the Company had $421,842 in cash and $2.5 million in total debt.
Alopexx IPO details
Alopexx intends to raise $15 million in gross proceeds from an initial public offering of its common stock, although the final amount may vary.
No existing shareholders have expressed an interest in purchasing shares at the IPO price, although this element could become a feature of the IPO if disclosed in a future filing.
Management says it will use the net proceeds from the IPO as follows:
approximately $5.5 million to begin a proof-of-concept study of AV0328 vaccine, including manufacturing and correlative laboratory studies;
approximately $4.5 million to begin a proof-of-concept study of our monoclonal antibody in ICU patients; and
the remainder for general corporate purposes, including working capital, operating expenses and capital expenditures, and potential expansion of our research pipeline.
(Source – SEC)
Management’s presentation of the company’s roadshow is available here until the IPO is completed.
Regarding pending litigation, management announced that “on June 8, 2022, the Company was sued by Xenothera in the Commercial Court of Nantes, France. The lawsuit aims, among other things, to force the company to conclude a license agreement with Xenothera or to pay 120,000,000 euros in damages. No liability has been recorded in relation to this matter.’
The only listed bookrunner of the IPO is ThinkEquity.
Comment on the IPO of Alopexx
ALPX is seeking funding from the US public capital market to advance its pipeline of vaccine and antibody drug candidates.
The Company’s lead candidates are vaccine AV0328, to treat pneumonia and meningococcal infections, and monoclonal antibody F598, to treat ICU-acquired infections and prevent postoperative abdominal infections.
Both candidates have been shown to be well tolerated in phase 1 safety studies.
The market opportunity for the treatment of hospital-acquired infections is large but is expected to grow only slowly in the coming years.
Management has not disclosed any collaborative relationships with major pharmaceutical companies.
The Company’s investor syndicate does not include any well-known life science-focused institutional venture capital firms or strategic investors.
ThinkEquity is the sole underwriter, and IPOs led by the firm over the past 12 months have generated an average negative return (52.5%) since its IPO. This is a lowest performance for any major underwriter over the period.
For AV0328, the company has the potential to be included in the US FDA’s Accelerated Approval Program, which could shorten the time to potential approval.
When we learn management’s assumptions about IPO pricing and valuation, I’ll provide an update.
Estimated IPO Price Date: To be announced.
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