After starting the year on a high note, the IPO market is currently going through a slow phase mainly due to the continuing volatility in the stock market amid deepening geopolitical concerns. Biopharmaceutical company AN2 Therapeutics, Inc. recently filed papers for an initial public offering. The company is focused on the development of treatment for non-tuberculous mycobacterial lung disease, the market for which is estimated to grow at a compound annual rate of 6.6% through 2030.
Eyes $75 Mln
The Menlo Park-based company is planning a traditional initial public offering to raise around $75 million. After the stock-market debut, the shares will trade on the Nasdaq Global Market under the ticker symbol ANTX. Meanwhile, the management is yet to reveal details of the offering, including the number of shares and the offer price.
Read management/analysts’ comments on quarterly reports
The first product candidate in AN2’s pipeline is epetraborole, which is being developed for the treatment of mycobacterium avium complex (MAC) lung disease, which accounts for about 80% of total non-tuberculous lung diseases in the U.S. The company has in-licensed the exclusive global rights to produce and commercialize epetraborole from Anacor Pharmaceuticals, which is owned by Pfizer Inc. (NYSE: PFE)
Epetraborole
Proceeds from the initial public offering will mainly be used for advancing the development of epetraborole, which is about to enter phase 2/3 of the clinical trial. A part of the amount will be used for funding the expansion of epetraborole in treatment-refractory MAC lung disease into other key markets. The remaining amount will be used for expanding the drug discovery platform and for general corporate purposes.
The company is pursuing its clinical trial programs with support from a bunch of investors and is all set to begin advanced-stage studies on the lead drug candidate. Besides Anacor, the other investors include Adjuvant Global Health Technology Fund, RA Capital, and Biotechnology Value Fund.
The Market
Currently, there is only one FDA-approved therapy for treatment-refractory MAC lung disease. It is estimated that there are around 200,000 patients with NTM lung disease in the U.S, and many of them remain underdiagnosed. The prevalence of this medical condition is increasing in the country at an estimated rate of 8% per year. While the rapid shift towards branded therapeutics bodes well for the company, it would face stiff competition from the likes of Insmed, RedHill Biopharma, novoteris and savara.
Meihua’s IPO might set the stage for revival of Chinese listings in the US
Like most development-stage biopharma companies, AN2 is yet to generate profit because the company doesn’t have any marketable products that can bring revenue. At the end of the fiscal year ended December 2021, AN2 had $3.4 million in liabilities and $62 million in cash, cash equivalents and investments.