The queue of Israeli biomedical companies preparing Wall Street offerings is lengthening. BioBlast Pharma, VBL Therapeutics, Mapi-Pharma, and ReWalk Robotics revised their prospectuses this week. All these companies are expected to launch their road shows in the coming days, and if the investors respond well, they are expected to complete their offerings in two-three weeks.
Mapi-Pharma is the most advanced; its offering is slated for July 24. The company, founded by former Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) senior executive Dr. Ehud Marom, develops improved generic drugs, one of which is expected to compete with Teva's Copaxone. The company is seeking to raise $37 million ($43 million if the underwriters exercise their option), at a company value of $200-228 million, after money, with the help of its underwriter, Aegis.
The terms for BioBlast and VBL's offerings have already been set, with the offerings scheduled for July 31. BioBlast, founded by CEO Dalia Megiddo and CFO Udi Gilboa, develops drugs for rare diseases. The company recently replaced Aegis, its underwriter, which conducted a successful offering for Megiddo and Gilboa's previous company, Alcobra Pharmaceuticals, with a team from Oppenheimer and Roth Capital Partners, underwriters with more experience in the US capital market. The volume of the offering is $40 million, with a sought after company value of $158-186 million, after money.
VBL, led by CEO Dr. Dror Harats, develops drugs for treating infectious diseases and cancer. The company is seeking to raise $75.6 million as a company value of $240-278 million, after money. This is an ambitious offering, but the underwriters - Deutsche Bank, Wells Fargo, JMP, Needham, and Oppenheimer - can support such an offering.
ReWalk, which is developing a device enabling people until now confined to wheelchairs to walk by themselves, has yet to publish the full terms for its offering, and therefore cannot yet begin its official road show. The market is following this offering with interest, which it is believed will get underway next month.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2014
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