IPO Alert: Key facts about CinCor Pharma’s upcoming market debut

The healthcare sector, led by pharmaceutical and biotechnology firms, has contributed significantly to the IPO boom that sent the market into overdrive this year. With 2021 coming to an end, it is estimated that the market is headed for another year of record IPO activity.

CinCor Pharma, Inc. is among the last few IPO aspirants of the year that have submitted regulatory documents with the Securities and Exchange Commission. The Cincinnati-based clinical-stage biopharmaceutical company is focused on the development of novel therapeutics for the treatment of hypertension and cardio-renal diseases. CinCor recently revealed plans to become a public company through an initial public offering.

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If everything goes as planned, the stock will start trading on the Nasdaq Global Market under the symbol CINC. The underwriters are Morgan Stanley, Jefferies, and Evercore ISI. However, the offer price and the number of shares are yet to be disclosed.

To Raise $100 Mln

The offering is expected to fetch around $100 million, which the company intends to use for funding the development of its sole drug candidate CIN-107. Earlier, it had raised $143 million in a funding round, to take forward the drug development program.

Road Ahead

CinCor, which came into being in 2018 as a subsidiary of CinRx Pharma, later became an independent entity through a spin-off. Having invested heavily in the business, mainly for R&D activities related to CIN-107, the drugmaker has a long way to go before becoming profitable because the formulation needs to secure the required regulatory approval after successfully completing the clinical studies.

The fact that the company is solely dependent on CIN-107 could be a concern for prospective investors – currently, there is no other product in the pipeline for generating additional revenue in the future. Also, the hypertension segment has become highly competitive and CinCor’s peers like Mineralys and PhaseBio are making steady inroads into the market.

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Read management/analysts’ comments on quarterly reports

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CIN-107 is in the early stages of a phase-II trial being conducted to evaluate its efficiency in treating patients with severe hypertension and high plasma aldosterone. The company recently announced the dosing of the first patient in the clinical trial. Topline data from the study is expected to come in the second half of 2022.

In the fiscal year ended December 2020, CinCor reported a net loss of $22.3 million, which is wider than the $5-million loss it incurred in the prior year. The company is yet to generate revenues.