Published On: Sun, Sep 21st, 2014

Foamix Disappointing IPO Drops Share Price to $6


Israeli biomedical firm Foamix is moving ahead with its New York IPO, but has greatly reduced its expectations, dropping it’s per share asking price to only $6 from the previously expected $10 to $12 range.

The company had previously hoped to raise as much as $60 million on the NASDAQ for a company valuation of $234 million, but now Foamix has announced that it anticipates only bringing in about $40 million and a valuation of only $128 million.

Foamix Pharmaceuticals is a specialty pharmaceutical company, which declares that it is committed to addressing unmet needs of patients by bringing innovative solutions to the field of dermatology. It is focused on the development of proprietary topical foams and OilGel products for dermatology, gynecology, wounds and burns as well as ophthalmic disorders.

Its lead product is an acne medication currently under development, the Topical 4% Minocycline Foam formulation which addresses large markets in dermatology and ophthalmology. Minocycline foam demonstrated high efficacy and favorable safety in two phase II clinical studies in Acne and Impetigo patients. The company expects to enter Phase 3 trials for it in 2015.

Last week the company announced the pricing of its initial public offering of 6.7 million ordinary shares at a price to the public of $6.00 per share. They had previously only wanted to issue 5.9 million shares. All of the ordinary shares are being offered by Foamix Pharmaceuticals. In addition, Foamix has granted the underwriters a 30-day option to purchase up to 1, 005, 000 additional ordinary shares. The shares were expected to begin trading on the NASDAQ Global Market on Thursday, September 18, 2014, under the ticker symbol “FOMX.” The offering is expected to close on Tuesday, September 23, 2014, subject to customary closing conditions.

Barclays Capital Inc. and Cowen and Company, LLC are acting as joint book-running managers for the offering. Oppenheimer & Co. Inc. and Maxim Group LLC are acting as co-managers.

The stock opened at $8 on Thursday and reached a high of $11

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