IPO Alert: Cancer drug company Nuvectis Pharma set for $30-million IPO

After months of hectic activity, the IPO market experienced a lull in the Thanksgiving week, but it is still headed for a record year though the rush led by the technology and healthcare sectors is probably cooling down. The momentum is expected to pick up in the coming days as many aspirants would seek to go public before the holidays.

One of the major upcoming events is the listing of Nuvectis Pharma, Inc., a biotechnology firm focused on the development of novel targeted therapeutics for the treatment of cancer.

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The company intends to offer around 2.3 million shares at an estimated price between $12 and $14. At the mid-point of the range, it would yield around $30 million. The offering will be managed by ThinkEquity, the sole book-runner. Once approved by regulators, the stock will list on the Nasdaq stock exchange under the ticker symbol NVCT.

Targets $30 Mln

The amount to be raised through the offering will mainly be used for advancing the clinical trials of Nuvectis’ lead candidate NXP800 and second treatment NXP900, which are indicated for the treatment of different types of cancer. The company was founded in 2020 and is currently led by chief executive officer Ron Bentsur.

It is estimated that oncology, Nuvectis’ core business, is the fastest-growing pharmaceutical segment, wherein several therapeutic needs still remain unmet. The company’s focus on specialty care should help it tap into opportunities in this healthcare area. Moreover, there has been continued innovation in cancer research, thanks to the steady flow of funds — a trend that bodes well for early-stage drug developers like Nuvectis.

Competition

Though it is a highly promising area, the market for oncology pharmaceuticals is highly competitive. It goes without saying that the future prospects of the company would depend on the successful completion and commercial launch of its two leading drug candidates, which is not guaranteed.

Nuvectis is a phase-I ready company, and its formulations need to successfully complete the critical phase-II trials before hitting the market. Also, the intense research and development activities associated with clinical programs would require heavy investments.

Licensing

The company raised around $15 million in a funding round earlier this year. Of that, around $3.5 million was used as upfront payment in connection with an exclusive licensing agreement for NXP800. Later, a similar amount was paid as upfront payment for the licensing agreement related to NXP900. As of September 30, the company had a cash and cash equivalents balance of $6.8 million.

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Read management/analysts’ comments on quarterly reports

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In the nine months ended September 30, 2021, Nuvectis incurred a net loss of $10.63 million or $2.54 per share. The company did not generate any revenue during that period.