Offer Downsized
In a surprise move, the pre-clinical biomedical firm this week revealed plans to reduce the size of the initial public offering by around 50%. As per the revised filing, it will offer approximately two million shares for $10-12 per share. At the mid-point of the price range, the offering would generate proceeds of around $22 million.
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After securing regulatory sanction, the shares will start trading on the Nasdaq stock exchange under the symbol OCEA later this year. The offering will be managed by Roth Capital Partners and Jones Trading. In an earlier SEC filing, the Rhode Island-based company had said it would offer 6.3 million shares in the $7-9 per share range, which would have yielded more than $50 million.
Pipeline
The focus of Ocean’s therapeutic programs is oncology, fibrosis, infectious diseases, and inflammation disorders, and the company operates through partnerships with hospitals and research institutions. The preclinical pipeline includes humanized monoclonal antibodies for non-small cell lung cancer/glioblastoma multiforme and a formulation for the treatment of Idiopathic Pulmonary Fibrosis. It has also licensed a COVID-19 therapeutic, which is expected to go into phase-I and phase-II trials in the first half.
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It is not easy to evaluate the effectiveness and success of the loss-making company’s performance so far, after its inception in January 2019. The management has warned that it would continue incurring losses in the near future due to the absence of marketable products. The company would require additional capital to successfully commercialize the products and become profitable.
Financial Data
In the nine months ended September 2021, Ocean’s net loss totaled $54.2 million, which is significantly wider than the $0.77 million loss incurred in the prior-year period. The bottom-line performance was affected by a multi-fold increase in general & administrative expenses and around $30 million of research and development expenses.