Athenex IPO Preview

Company: Athenex, Inc.
Symbol: ATNX
Description: They are a global biopharmaceutical company dedicated to the discovery, development and commercialization of novel therapies for the treatment of cancer.
Shares: 6 million
Price Range: $11.00-$13.00
Trade Date: 6/14
Underwriter(s): Credit Suisse, Deutsche Bank Securities, J.P. Morgan
Co-Manager: ICBC International

Link to S-1/A Prospectus

Investor Access: This deal can be accessed via the three main underwriters and the co-manager or through the selling group, Motif. Click below to head to the indication page.

Business:

Athenex, Inc. believes they have the ability to overcome the challenges of oral delivery of chemotherapy. Their lead platform, Orascovery, is based on the novel oral P-glycoprotein, or P-gp, pump inhibitor molecule HM30181A (Oraxol). Athenex believes the potentially better clinical response and tolerability of Oraxol versus injectable paclitaxel opens the possibility for greater use of chemo and immuno-oncology therapies. They are currently enrolling patients in a Phase 3 clinical trial of Oraxol.

The other platform, “Src Kinase Inhibition”, is one where Athenex is developing is a tyrosine kinase protein involved in regulating cell growth, is strongly implicated with blocking metastasis. They anticipate the development timeframe for their KX-02 drug candidate for GBM to be accelerated once they commence their partnered clinical program in China. Approval of the first drug in each of their research and development platforms may serve as validation and facilitate approvals of other pipeline drug candidates using similar technology.

The global market for cancer treatments reached $107 billion in 2015 and is expected to reach $150 billion in 2020.

Collaboration:

This company has a collaboration with Eli Lilly & Co — this according to the prospectus:

“In October 2016, we entered into a clinical study collaboration with Eli Lilly and Company to evaluate Oraxol in combination with Lilly’s approved monoclonal antibody Cyramza (ramucirumab) to treat gastric, gastric-esophageal and esophageal cancer.”

Comp / Sector Performance: Seven of nine Healthcare IPOs have priced in-range so far in 2017 with two pricing above the range. The average gain at first trade for the Healthcare sector in 2017 is 6.0% and those nine deals have traded higher on average. The current gain for the Healthcare sector of the IPO market above its offering price is 11.0%.

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