IPO watch: CoTherix, Momenta, Cytokinetics, Basilea

Biopharmaceutical company CoTherix has filed with US regulators for an initial public offering worth an estimated US$70 million.

CoTherix focuses on licensing, developing and commercialising products for the treatment of cardiopulmonary and infectious diseases. Its lead product candidate is called Ventavis. The company obtained exclusive US licensing rights for Ventavis from Schering in October 2003.

Momenta

Massachusetts-based Momenta Pharmaceuticals has filed for an IPO worth an estimated US$86.3 million.

Momenta specialises in the sequencing and engineering of complex sugars to improve existing drugs and for new products. IPO proceeds will go toward commercialisation, development and research regarding product candidates, as well as adding to working capital and for other general corporate purposes.

Cytokinetics

Californian biopharma company Cytokinetics is to sell 5.8 million shares at US$11-$13 each in its IPO. Based on the midpoint price range, the company estimated its net IPO proceeds at $63.2 million.

Cytokinetics focuses on the discovery, development and commercialisation of small molecule drugs, specifically targeting the cytoskeleton. The cytoskeleton is a network of protein filaments and microtubules in the cytoplasm that controls cell shape and movement among other functions.

"Our focus on the cytoskeleton enables us to develop novel and potentially safer and more effective classes of drugs directed at treatments for cancer, cardiovascular disease, fungal diseases and other diseases," the company said.

Entities affiliated with Credit Suisse Group's Credit Suisse First Boston now have a 15.9 per cent stake in Cytokinetics. Microsoft co-founder Paul Allen's investment firm Vulcan Ventures has an 11.9 per cent stake in the company and Britain's GlaxoSmithKline's Glaxo Group has a 7.7 per cent stake.

Basilea

Swiss company Basilea Pharmaceutica hopes to raise about 215 million Swiss francs through an IPO this month. The Basel-based firm, spun off from Swiss drugmaker Roche in 2000, specialises in new treatments to fight multi-drug resistant bacteria, or 'superbugs'.

Roche has a 46.4 per cent stake in the firm, which made a net loss of 55.7 million francs in 2003 and doesn't expect to make a profit until 2007 or 2008.

Yet analysts reckon its market debut is positive news for the biotech sector, where a lull in new share issues in recent years has resulted in pent-up investor demand.

"Following on from the recent IPO of [UK firm] Ark Therapeutics, this highlights that the European biotech IPO window is well and truly open and is obviously positive for the biotech sector as a whole," said Adrian Howd, an analyst with ABN AMRO in London. Ark raised US$101 million in a London Stock Exchange IPO last week.