Everything you need to know about OS Therapies’ upcoming IPO

There has been a strong uptick in IPO activity this year compared to 2023 when the market witnessed a slowdown. In the first half, the number of IPOs grew in double digits, led by the technology and biotech sectors. Recently, OS Therapies Incorporated, a clinical-stage biopharmaceutical company focused on the development of treatments for Osteosarcoma, filed papers with the Securities and Exchange Commission to go public.  

The Offering

The company plans to offer around 2.0 million shares of its common stock in the initial public offering, at an estimated price of $4.0 per share. It has applied to list the shares for trading on the NYSE American under the symbol OSTX. Brookline Capital Markets, a division of Arcadia Securities, is the underwriter for the offering. The underwriters have been granted the option to purchase up to 300,000 additional shares, exercisable for 45 days.

The company is looking to raise around $6.74 million, or $7.84 million if the underwriters exercise in full their option to purchase additional shares, from the offering. Around $4.2 million of the proceeds will be used for advancing the clinical development of OST-HER2, the lead core product candidate for Osteosarcoma. The company intends to use about $1.2 million to advance the development of its ovarian cancer drug OST-tADC.

The remainder of the net proceeds will be used for the discovery and development of new product candidates and working capital and other general corporate purposes. As of now, the company doesn’t have plans to pay cash dividends to stockholders, rather it will retain all available funds and any future earnings to fund the growth and development of its business.

Financials

OS Therapies was founded in April 2018 by Paul Romness, who has served as the president and chief executive officer since then. For the three months ended March 2024, the company reported a net loss applicable to shareholders of $1.49 million or $0.25 per share, compared to a loss of $1.88 million or $0.35 per share in the corresponding period last year. Research and development expenses were $0.36 million during the three months, lower than the $0.75 million reported in the year-ago quarter.